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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