Income Tax Return Processing Guide 2025

Income Tax Return processing simplified! Check your ITR status, understand notices, and know when to expect your refund.
Income Tax Return Processing Guide 2025
4 min
23-April-2025
Filing your income tax return feels like a job well done — but it is only half the journey. The real action begins when the Income Tax Department starts processing your return. This crucial step determines if you are eligible for a refund, owe more tax, or are all set.

Whether you are a salaried professional, a freelancer, or a retiree investing in tax-saving FDs, understanding this phase helps you stay compliant, avoid penalties, and receive refunds on time.

Step 1: Filing and Verifying Your ITR

Before your return gets processed, it must be filed and verified.

  • Filing reflects your total income, tax-saving investments (like under Sections 80C and 80D), and the taxes paid.
  • Verification confirms your submission — without it, your return is treated as not filed. You can verify:
  • Online using Aadhaar OTP, net banking, or your Demat account
  • Offline by sending the signed ITR-V form to the CPC, Bengaluru
Once filed and verified, your return moves into automated processing — and that’s where the actual scrutiny begins.

Want your money to grow while you save tax? Open a Fixed Deposit Account with Bajaj Finance and enjoy competitive returns.

Step 2: ITR Processing Under Section 143(1)

The Income Tax Department processes your return under Section 143(1) — a quick check done without a formal audit. Here’s what they look for:

  • Math errors – Did you miscalculate anything?
  • Incorrect deductions – Are any claims not supported by proof?
  • Mismatch in TDS or tax paid – Does your Form 26AS match what you declared?
Once the system cross-checks your information, you will receive an intimation under Section 143(1) with one of these outcomes:

  • No discrepancy – Your return is accepted as-is.
  • Refund due – You paid more tax than needed.
  • Tax payable – You owe additional tax.
The process is usually completed within 16–18 days, so it’s fast — but accuracy is key.

Planning to invest tour money in safe investment instrument like PPF?

FD should be your choice! Check FD Interest Rates provided by Bajaj Finance and plan your investments better.

INVERT Widget

For web:-

TopicMandatory/ OptionalChar LimitContent to update on page
Heading TextMandatory90 CharHighest Credit Ratings | Trusted with 1.4 million Deposits | Assured Returns on FD
CTA Text Mandatory40 CharOpen FD
CTA LinkMandatoryhttps://www.bajajfinserv.in/webform/Deposit/depositLandingPage#fd
Nudge 1MandatoryNew Product Launch
Title 1 (Rate of Interest) R1Mandatory17 CharBajaj Finance FD Max
Value10Up to %$$FDMAX-senhighest-interestFD$$% p.a.
Title 2 (Min. Deposit) R1Mandatory17 CharFlexible Tenure
Value1012-60 months
Title 3 (Min. Tenor) R1Mandatory17 CharDeposit Amount
Value10%$$FDmindepositFD$$% to %$$FDMAXmaxdepositFD$$%
Nudge 2MandatoryOnly on Website and App
Title 1 (Rate of Interest) R1Mandatory17 CharBajaj Finance Digital FD*
Value10Up to 8.40% p.a.
Title 2 (Min. Deposit) R1Mandatory17 CharTenure
Value10%$$FDmaxintresttenureFD$$%
Title 3 (Min. Tenor) R1Mandatory17 CharDeposit Amount
Value10%$$FDexistingmindepositFD$$% to %$$FDnewmaxdepositFD$$%
Nudge 3MandatoryRegular FDs
Title 3 (Senior Citizen) R2Mandatory17 CharInterest Rate*
Value10Up to 8.25% p.a.
Title 1 (Max Deposit) R2Mandatory20 CharFlexible Tenure
Value12-60 months
Title 2 (Max Tenor) R2Mandatory20 CharDeposit Amount
Value%$$FDexistingmindepositFD$$% to %$$FDnewmaxdepositFD$$%
Title 1 (Rate of Interest) R1Mandatory17 CharBajaj Finance FD Max
Value10Up to %$$FDMAX-senhighest-interestFD$$% p.a.
Title 2 (Min. Deposit) R1Mandatory17 CharFlexible Tenure
Value1012-60 months
Title 3 (Min. Tenor) R1Mandatory17 CharDeposit Amount
Value10%$$FDmindepositFD$$% to $$FDMAXmaxdepositFD$$%
Field 1Enter your mobile number
Field 2Please enter your 10-digit mobile number to proceed
Disclaimer textMandatoryBy proceeding, you agree to ourTerms and Conditions
XF Path/content/experience-fragments/bajajfinserv/web/in/en/investment/deposits/fd/form-widget/master


Step 3: What to Expect After ITR Processing

Once the return is processed, your dashboard will show one of these statuses:

  • ITR processed with no demand/refund – You are in the clear.
  • ITR processed with refund – Expect the amount soon.
  • ITR processed with demand – You may have to pay more tax.
You will get an official update via SMS and email. Always read the intimation notice carefully. For instance, if you claimed an FD under Section 80C but didn’t upload proof, the department might reject the claim.

Also read: Tax saving Fixed Deposit

Step 4: How to Track Your ITR Processing Status

Staying updated helps you avoid surprises. Here is how to track your ITR status:

  • Log in to the Income Tax e-filing portal
  • Go to ‘e-File’ > ‘Income Tax Returns’ > ‘View Filed Returns’
  • Select the correct Assessment Year and click on “View Details”
  • You’ll see statuses like:
  • Processed
  • Pending
  • Refund Issued
  • Demand Raised
Tip: Ensure your bank account is pre-validated and linked with your PAN to receive refunds faster.

Why ITR Processing Matters More Than You Think

Income tax return processing is not just backend admin work — it directly impacts your financial clarity. It ensures that:

  • Your refund is released quickly
  • Any errors are flagged and corrected in time
  • Your tax-saving investments like Bajaj Finance FDs are properly claimed
Being aware of how ITR processing works means fewer headaches, fewer notices, and better planning.

Looking to park your money safely while earning inflation beating returns? Check Eligibility for Fixed Deposit now and plan smarter.

Component – Fixed deposit variants:-

For Web :–

TopicMandatory/ OptionalChar LimitContent
Heading Text <H2>Fixed deposit variants
Description textHighest Credit Ratings | Trusted with over 1.4 million Deposits | Assured Returns on FD
Nudge 1MandatoryNew Product
Text 1MandatoryFD Max
SubheadingMandatoryINTEREST RATES UP TO 8.60% p.a.
CTAMandatoryInvest Online
CTA LinkMandatoryhttps://www.bajajfinserv.in/investments/fixed-deposit
Text 2MandatoryDigital FDOnly on App/Web
SubheadingMandatoryINTEREST RATES UP TO 8.60% p.a.
CTAMandatoryInvest Online
CTA LinkMandatoryhttps://www.bajajfinserv.in/investments/fixed-deposit
Text 3%$$FDmaxintresttenureFD$$%
SubheadingMandatoryINTEREST RATES UP TO 8.60% p.a.
CTA Text MandatoryOpen FD
CTA Linkhttps://www.bajajfinserv.in/investments/fixed-deposit
Text 4MandatoryFD - Age below 60
SubheadingMandatoryINTEREST RATES UP TO 8.25% p.a.
CTA TextMandatoryOpen FD
CTA LinkMandatoryhttps://www.bajajfinserv.in/investments/fixed-deposit
Text 5MandatoryFD - Senior Citizen
SubheadingMandatoryINTEREST RATES UP TO 8.60% p.a.
CTA TextMandatoryOpen FD
CTA LinkMandatoryhttps://www.bajajfinserv.in/investments/fixed-deposit
Text 6MandatoryFD – Special Tenure
SubheadingMandatoryINTEREST RATES UP TO 8.60% p.a.
CTA TextMandatoryOpen FD
CTA LinkMandatoryhttps://www.bajajfinserv.in/investments/fixed-deposit
XF Path/content/experience-fragments/bajajfinserv/web/in/en/investment/deposits/fd/fd-variant/fd-variant


Final Thoughts

From filing and verifying your return to tracking the Section 143(1) intimation, every step of ITR processing matters. It is what transforms your filed return into actual outcomes — whether it is a refund, tax payable, or smooth clearance.

If you are investing in tax-saving instruments like PPF or ELSS, don’t leave things to chance. File on time, verify early, and track your ITR status regularly.

Your ITR isn't truly complete until it’s processed. Stay compliant, stay ahead.

Calculate your expected investment returns with the help of our investment calculators

Investment Calculator
Fixed Deposit CalculatorSSY CalculatorPublic Provident Fund Calculator
RD Interest CalculatorEPF CalculatorGratuity Calculator


Frequently asked questions

How long does ITR processing take?
The Income Tax Department typically processes ITRs within 16 to 18 days after verification. However, the time may vary based on case complexity or if additional documentation is required. Ensure accurate filing and prompt verification to avoid delays. You can track the ITR processing status online through the income tax e-filing portal.

Can I revise my ITR after it is processed?
Yes, you can revise your ITR even after it has been processed, provided it is within the same assessment year. The revision must be done before the deadline specified under Section 139(5). This allows correction of any errors or omissions. Always verify the revised return to ensure the department processes it correctly.

Show More Show Less

Bajaj Finserv App for All Your Financial Needs and Goals

Trusted by 50 million+ customers in India, Bajaj Finserv App is a one-stop solution for all your financial needs and goals.

You can use the Bajaj Finserv App to:

Apply for loans online, such as Instant Personal Loan, Home Loan, Business Loan, Gold Loan, and more.

Explore and apply for co-branded credit cards online.

Invest in fixed deposits and mutual funds on the app.

Choose from multiple insurance for your health, motor and even pocket insurance, from various insurance providers.

Pay and manage your bills and recharges using the BBPS platform. Use Bajaj Pay and Bajaj Wallet for quick and simple money transfers and transactions.

Apply for Insta EMI Card and get a pre-approved limit on the app. Explore over 1 million products on the app that can be purchased from a partner store on No Cost EMIs.

Shop from over 100+ brand partners that offer a diverse range of products and services.

Use specialised tools like EMI calculators, SIP Calculators

Check your credit score, download loan statements and even get quick customer support—all on the app.

Download the Bajaj Finserv App today and experience the convenience of managing your finances on one app.

Do more with the Bajaj Finserv App!

UPI, Wallet, Loans, Investments, Cards, Shopping and more

Disclaimer

As regards deposit taking activity of Bajaj Finance Ltd (BFL), the viewers may refer to the advertisement in the Indian Express (Mumbai Edition) and Loksatta (Pune Edition) furnished in the application form for soliciting public deposits or referhttps://www.bajajfinserv.in/fixed-deposit-archivesThe company is having a valid Certificate of Registration dated March 5, 1998 issued by the Reserve Bank of India under section 45 IA of the Reserve Bank of India Act, 1934. However, the RBI does not accept any responsibility or guarantee about the present position as to the financial soundness of the company or for the correctness of any of the statements or representations made or opinions expressed by the company and for repayment of deposits/discharge of the liabilities by the company.

For theFD calculatorthe actual returns may vary slightly if the Fixed Deposit tenure includes a leap year.

Show All Text