ITR Processing Status Explained: From Filed to Processed

When an Income Tax Return (ITR) is filed, it doesn’t end there. The return moves through multiple automated checks before it is officially processed by the Centralized Processing Centre (CPC) under the Income Tax Act, 1961. Each stage — from filing and verification to processing and final intimation — reflects how accurately the return aligns with the taxpayer’s financial data, TDS records, and Form 26AS. Understanding these stages ensures taxpayers remain informed about their refund status, compliance steps, and next actions.

---

Table of Contents

• Filed but Pending e-Verification or Verification

• Successfully Verified but Not Yet Processed

• What Happens During the ITR Processing Stage

• What Does “ITR Processed” Mean?

• Outcomes Under Section 143(1): Refund, Demand, or Acceptance

• Other Common ITR Statuses Explained

• How to Check ITR Processing Status Online

• Role of Bank Account Details in ITR Refunds

• How TaxBuddy Simplifies ITR Filing and Tracking

• Conclusion

• FAQs

Filed but Pending e-Verification or Verification

After submitting your Income Tax Return (ITR), the next critical step is verification. Until this step is completed, your return is considered “Filed but Pending e-Verification.” This means the Income Tax Department has received your return but cannot begin processing it. Verification must be completed within 30 days of filing, either electronically through Aadhaar OTP, net banking, or by physically sending a signed ITR-V form to CPC Bengaluru. Failure to verify within this timeline renders the return invalid, and it must be refiled.

Successfully Verified but Not Yet Processed

Once your return is verified, its status changes to “Successfully Verified.” At this stage, the ITR is queued for processing by the Centralized Processing Centre (CPC). The department cross-verifies the information declared in your return with data from Form 26AS, AIS, TIS, and TDS statements. This step ensures accuracy and prevents discrepancies. The duration of this stage can vary depending on the complexity of the return, data validation, and system load at the CPC.

What Happens During the ITR Processing Stage

During the ITR processing phase, the Income Tax Department runs an automated check under Section 143(1) to validate figures like income, deductions, tax paid, and refund claims. Any mismatch between the taxpayer’s declaration and department records is flagged for review. If everything matches, the return is processed smoothly. In case of discrepancies, an intimation is issued detailing the differences and the resulting tax computation. The taxpayer can accept or dispute the findings within the stipulated time frame.

What Does “ITR Processed” Mean?

The status “ITR Processed” indicates that the CPC has completed the evaluation of your return under Section 143(1). It means your income, deductions, and tax liability have been validated and accepted. This is the final stage of assessment for most individual taxpayers. If a refund is due, it is initiated shortly after this stage. If there’s an additional tax payable or mismatch, an intimation notice is issued explaining the reason and the next steps to resolve it.

Outcomes Under Section 143(1): Refund, Demand, or Acceptance

After processing, your ITR can result in one of three outcomes under Section 143(1):

1. Refund: When the total tax paid (through TDS, advance tax, or self-assessment tax) exceeds your actual liability.

2. Demand: When the system detects a shortfall in tax payment. The taxpayer must pay the demand amount within the specified period.

3. Acceptance: When the department’s calculation matches the taxpayer’s, and no refund or demand arises.

Each outcome is communicated through an official intimation sent to the registered email address and is also visible in your account on the income tax e-filing portal.

Other Common ITR Statuses Explained

Apart from the main ITR statuses such as “Return Processed” or “Refund Approved,” taxpayers may come across several other terms while checking their return status on the Income Tax e-filing portal. Understanding these terms helps in knowing the exact stage of processing and any required follow-up action.

“Defective Return u/s 139(9)” indicates that the Income Tax Department has found discrepancies, missing information, or errors in the filed return. This could be due to reasons such as incomplete details, mismatched figures between Form 26AS and the return, or missing attachments. In such cases, the taxpayer must correct and resubmit the return within the specified deadline to avoid it being treated as invalid. The portal provides a detailed notice explaining the error and the steps to rectify it.

“Rectification Processed” reflects that a correction request filed under Section 154 has been reviewed and processed by the department. A rectification request is typically made when a taxpayer identifies an error in the original intimation order, such as incorrect tax computation or mismatch in TDS credit. Once the rectification is processed, the taxpayer may receive a revised intimation showing the corrected figures, which could lead to additional tax payable, refund adjustment, or closure of the issue.

“Revised Return Filed” appears when the taxpayer submits a new return to replace an earlier one that contained errors or omissions. A revised return can be filed before the end of the relevant assessment year or before the return is processed, whichever is earlier. The revised return completely replaces the previous one and is treated as the final version by the Income Tax Department. It is crucial to ensure that all information in the revised return is accurate and consistent with the supporting documents.

“Refund Issued” signifies that the Income Tax Department has approved the refund amount and initiated the process of crediting it to the taxpayer’s registered bank account. Depending on the bank and refund mode, the amount may take a few days to reflect. If the refund fails due to incorrect bank details or an inactive account, the taxpayer can update the bank information on the portal and revalidate the account to initiate reissue.

By understanding these ITR statuses, taxpayers can monitor their return progress more confidently, respond promptly to notices, and ensure smooth closure of their income tax filing process.

How to Check ITR Processing Status Online

Taxpayers can check the status of their return through the official Income Tax e-filing portal. By logging into the account, selecting the “View Filed Returns” option, and clicking on “Status,” the current stage of processing can be viewed. The system shows whether the return is pending verification, processed, or if a refund or demand has been generated. Alternatively, status updates are also available through email and SMS alerts from the Income Tax Department.

Role of Bank Account Details in ITR Refunds

Accurate bank account details are crucial for receiving refunds. The bank account must be pre-validated and linked with the taxpayer’s PAN to ensure smooth credit. Any mismatch in IFSC, account number, or validation status can lead to refund delays or failures. Taxpayers should check the “Pre-Validate Bank Account” section on the income tax portal to confirm their details are correct. Timely updating of details helps avoid refund re-issue requests.

How TaxBuddy Simplifies ITR Filing and Tracking

TaxBuddy simplifies the entire ITR filing and tracking process by combining AI-powered tools with expert support. It automatically imports income data from Form 16, Form 26AS, and AIS, ensuring zero mismatch during processing. Users can also track their ITR status directly within the platform, receive real-time alerts for verification, and get guided assistance for refunds or rectifications. TaxBuddy’s mobile app further allows convenient filing, document uploads, and refund tracking—all in one place.

Conclusion

Understanding the ITR processing journey helps taxpayers stay informed about each stage—from filing to final assessment. Ensuring timely verification, accurate reporting, and up-to-date bank details can prevent refund delays or notices. For a stress-free experience and accurate filing, it’s best to rely on trusted platforms that provide automation with professional guidance.

For anyone looking for assistance in tax filing, it is highly recommended to download the TaxBuddy mobile app for a simplified, secure, and hassle-free experience.

FAQs

Q1. How long does it take for ITR processing after verification? Once your ITR is successfully verified, the Income Tax Department generally takes between 30 to 60 days to process it. However, the duration can vary depending on the volume of filings during peak season, the accuracy of information submitted, and whether your case requires any manual review. Taxpayers can track the processing status online using the income tax e-filing portal.

Q2. What happens if I forget to verify my ITR within 30 days? If you fail to verify your return within 30 days of filing, it is considered invalid. This means the department treats it as if you never filed it. You’ll need to file it again as a fresh return, and if the due date for filing has passed, it may attract penalties or disallow certain deductions. Verification can be done easily through Aadhaar OTP, net banking, or an electronic verification code (EVC).

Q3. How will I know if my ITR has been processed? After your ITR is processed, the Income Tax Department sends an email and SMS notification confirming the completion under Section 143(1). You can also check the processing status by logging into your e-filing account. If everything matches, you’ll receive an “ITR processed successfully” message, but if discrepancies are found, you may receive an intimation showing a demand or refund adjustment.

Q4. What does it mean if I receive an “ITR Processed with Demand” message? This means the Income Tax Department has detected a shortfall in the taxes you paid. The computation in your ITR does not match the department’s records, resulting in an additional tax payable. You’ll need to review the intimation carefully, compare it with your filed details, and pay the outstanding amount within the specified timeline to avoid penalties or interest charges.

Q5. How can I track my refund status? You can track your refund status on two platforms — the Income Tax e-filing portal or the NSDL website. Enter your PAN and assessment year to view real-time updates. The status will indicate whether the refund has been issued, credited, or failed due to any technical issue. Regular checking ensures you can take quick action if a delay occurs.

Q6. Why has my refund not yet been credited even after being issued? Refunds often fail due to unvalidated or incorrect bank account details, mismatched IFSC codes, or inactive bank accounts. In such cases, log in to the income tax portal, update and re-validate your bank account, and request a re-issue of the refund. Using a pre-validated bank account linked with your PAN ensures faster and smoother crediting of refunds.

Q7. What does “Defective Return u/s 139(9)” mean? A defective return means that your filed return has missing, incomplete, or inconsistent information — such as income mismatch, wrong deduction claims, or missing schedules. The Income Tax Department notifies you of the defect via email, allowing you to correct and resubmit the return within a specified time frame. Failure to rectify the defect may lead to the return being treated as invalid.

Q8. Can I revise my ITR after it is processed? No, you cannot revise your return once it has been processed by the Income Tax Department. However, if you discover any errors afterward, you can submit a rectification request under Section 154. This allows you to correct factual mistakes like incorrect tax credit, income mismatch, or computation errors. Platforms like TaxBuddy make this process seamless through guided support.

Q9. What is the difference between ‘ITR Filed’ and ‘ITR Processed’? “ITR Filed” simply means that you have successfully submitted your return online. “ITR Processed,” on the other hand, indicates that the Income Tax Department has reviewed your return, verified the details with their records (AIS, Form 26AS, TDS), and finalized your tax liability or refund. The processing step is crucial as it officially validates your filing.

Q10. How can TaxBuddy help if my ITR shows a mismatch or demand? If your ITR shows a demand or mismatch, TaxBuddy’s expert team reviews your computation sheet and the intimation notice under Section 143(1). They identify discrepancies, verify TDS entries, and file a rectification request to correct the issue. The platform ensures compliance with timelines and helps resolve such issues without unnecessary follow-ups with the department.

Q11. What if my ITR shows as ‘Processed with Refund Failure’? This status means your refund was issued by the department but couldn’t be credited to your bank account, usually due to incorrect details or account closure. You can log in to your e-filing account, update the correct bank details, and request a refund reissue. TaxBuddy helps monitor such refund statuses and assists users in resolving failed refunds quickly.

Q12. Can I file my ITR directly through the TaxBuddy app?

Yes, you can file your income tax return easily through the TaxBuddy mobile app. The app allows you to upload your Form 16 or income details, automatically calculates deductions, and ensures all sections like 80C, 80D, or 80EEB are applied correctly. It offers a secure, guided, and hassle-free filing experience with expert support for error-free submissions and faster refunds.