Income Tax Return Processing Guide 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.

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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.

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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.

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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.

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