Filing your Income Tax Return can already feel overwhelming, and if you’ve ever had to file a delayed return under a condonation request, the wait for any kind of response from the Income Tax Department can be even more frustrating. Many taxpayers have found themselves in this exact situation — they submitted their returns electronically after receiving condonation approval, but the returns were never processed.
Thankfully, there’s finally some good news from the Central Board of Direct Taxes. On 25th June 2025, the CBDT issued Circular No. 07/2025, giving a much-needed extension for processing such delayed returns. If you filed your ITR under a condonation order and it was still pending, this update could be exactly what you’ve been hoping for.
The new circular allows the Income Tax Department to process valid returns that were filed up to 31st March 2024 under condonation, even if they weren’t acted on earlier due to technical or system-related issues. The department has until 31st March 2026 to send out the processing intimation under Section 143(1). This gives time to clear the backlog and ensures taxpayers are not left in the dark any longer.
However, it’s important to understand that this relaxation does not apply to cases where assessments or reassessments have already been completed. If that has happened in your case, this update will not make a difference.
Now, if you’re wondering about refunds, here’s the silver lining. If you’re owed a refund on your delayed return, don’t worry — you’ll still receive it, along with any interest you’re entitled to. The only condition is that your PAN must be linked with your Aadhaar. So if you haven’t done that yet, it’s a good idea to get it completed as soon as possible to avoid any unnecessary delays.
The systems team at DGIT will soon be laying out the process for handling these delayed returns, so more clarity will follow soon.
Moving Forward with Confidence
This move from the CBDT is a reassuring step for many honest taxpayers who had done their part but were waiting for a resolution. It shows that the department is listening and taking steps to make the process fairer and more transparent.
If you think you might be eligible under this circular, it’s a great time to connect with a trusted Chartered Accountant or tax advisor. A little professional help can go a long way in making sure you receive what you’re owed — and that you stay on the right side of compliance.