Still Waiting For Your ITR Refund? Tax Dept Will Now Process Pending Returns Filed For AY 2023-24 By Nov 2025

If you filed your income tax return for Assessment Year (AY) 2023-24 (financial year 2022-23) but haven’t heard back, no intimation, no refund, there is a fresh update that might matter to you.

In a circular dated June 9, 2025, the Central Board of Direct Taxes (CBDT) announced that the tax department will process all valid unprocessed returns for AY 2023-24 by November 30, 2025. This update currently applies to returns filed on time (by July 31, 2023) but somehow missed getting picked up before the usual deadline.

As per income tax rules, the tax processing of such refunds typically take place in a 9 month window. This means that the deadline for FY20 22-23 was over on December 31, 2024. But this new update has provided an extension wherein leftover ITRs will now be processed for refunds by November this year.

How will this update affect you?

There is nothing to lose or panic about here for the common taxpayers; the circular only announces deadline extension for the leftover returns from a particular financial year. This means that in case your return was stuck in the system and has still not been processed, you:

• Could get your refund, with interest if it is applicable.

• Might receive a tax demand - only if any discrepancy is found.

• Or it could just be processed with no further communication resulting in no refund, no demand for you.

To understand simply, your ITR filed in FY 2022-23 is not being ignored, but the outcome will vary based on what the tax department finds when they finally process it.

This is good news for…

Taxpayers who have been waiting for refunds, especially where TDS or advance tax payments had resulted in excess tax paid. They will now also be entitled to interest on the refund, calculated at 0.5 per cent per month.

This interest clock will start from April 2023 in most refund cases and from the date of filing if it was a self-assessment tax refund.

Are there any exceptions to this extension?

Yes, not every return will be eligible under this extension. For instance, the ones that were picked for scrutiny or were delayed due to some error on the taxpayer’s part (such as wrong bank details or PAN-Aadhar not being linked) will not get the benefit.

The department has also clearly stated that ‘no refunds will be issued if PAN is not linked with Aadhaar’ - this factor is non-negotiable as per existing rule.

Also, while the department can process these returns now, they can’t raise fresh tax demands under Section 143(1) at this stage since the legal window for that has closed. However, in rare cases, they may still issue reassessment notices if income is found to have escaped assessment, but that comes under a separate provision (Section 148) and has its own checks and timelines.

What should you do?

If you have been waiting, whether for a refund or just closure, this is a window of relief. You don’t have to refile or raise complaints if your return was filed correctly on time.

Just make sure your PAN and Aadhaar are linked, and your bank details are updated on the tax portal so that refunds, if any, don’t get stuck again.

Moreover, no action is needed on your part unless you receive a fresh intimation from the department. But yes, it might be worth logging into the tax portal once in a while to check for updates.