In case you have made an income tax return after its due date but had the same accepted by a condonation order, then you might also take advantage of the CBDT Relaxation of the recently announced CBDT Conditionally Accepted ITRs. This new guideline by the Central Board of Direct Taxes (CBDT) provides new relief to taxpayers who had their delayed returns accepted under the special provisions but they had not been processed because of timing.
Here, we are going to deconstruct what this relaxation is, who is entitled to it, how it functions, and the answers to frequently asked questions. You are waiting for a refund or you just want to know what is going on, read on to get plain-English education.
Understanding the CBDT Conditionally Accepted ITRs Relaxation
In the case of normal tax law in India, the income tax returns (ITRs) should be processed within a stipulated period after the time of filing them by the Income Tax Department. Even in cases where you can be granted permission to file late, you will not be able to file your return even after you miss the late-filing window. With a new circular of the CBDT that changed.
Circular No. 07/2025 of the board of June 25, 2025, gave relief in instances where:
- The filing was done electronically
- It was submitted on or before March 31, 2024
- Section 119(2)(b) of the Income-tax Act condoned the delay in filing
This relaxing enables processing of these returns which have not been processed and issuing intimations as they would have expired.
Why Was This Relaxation Needed?
The problem facing many taxpayers over the past years was that they had been allowed a late filing under Section 119(2)(b) but the technical system was unable to process it by the time the statutory deadline under Section 143(1) was reached. As a result:
- Refunds weren’t issued,
- No intimation or status of outcome was given to taxpayers,
- Most of them remained in stasis without any apparent decision.
It resulted in complaints and suffering particularly in instances where there were refunds owed. As this problem was realised, the CBDT intervened and gave a chance to process such valid, yet delayed, returns.
Who Can Benefit from Relaxation?
The relaxation is applicable to ITRs that fulfill the following conditions:
- Electronically (online) filed on or before March 31, 2024.
- Section 119(2)(b) condoned delay – i.e. you had permission to file late.
- The processing of the return itself was not made as the statutory deadline elapsed.
- There was no process of assessment or re-assessment (as in case of 143(3), 144, 147, etc.) done in that year.
In case of such returns, now the department has to give an intimation in Section 143(1) by March 31, 2026.
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What Happens Next? Intimations and Refunds
After your qualified refund has been done:
- An intimation will be made to you under Section 143(1) – substantially the formal outcome of processing.
- In case there is a refund to be made (such as due to an excessive deduction of tax) then the refund will be made in line with ordinary tax regulations.
- Interest can be charged on the refunds where the law demands.
Notable: There are situations when no refund can be made, such as when your PAN is not associated with Aadhaar (according to different CBDT directions).
Examples of Eligible Cases
The following are typical examples of situations where this relaxation can be useful to taxpayers:
- You had submitted a late return with the excuse of being ill but received condonation approval and now it is processed.
- You had a technical hitch that delayed your filing, but your condonation order was approved and taken.
- You have been awaiting a refund on a condoned late filing of a 2024 early year filing.
You are entitled to expect some processing and a result in all of these cases by March 2026.
Final Word
The CBDT Conditionally Accepted ITRs Relaxation is a relief to the minds of many taxpayers who were kept waiting yet they had submitted their returns with official approval. The CBDT has contributed to the fact that valid returns are not left in limbo because of deadlines in the processing or technical glitches.
In case you believe that your return is eligible, monitor the status of your e-filing portal and the messages you receive on the Income Tax Department and ensure that your PAN number and Aadhaar connection are current. You have an opportunity to claim the processing and refund you deserve.
FAQs
1. So what is a conditionally accepted ITR?
A conditional ITR is the one that has been submitted late but accepted by the tax authorities under Section 119(2)(b) due to some valid reasons like hardship or unavoidable delays.
2. Is the CBDT Conditionally Accepted ITRs Relaxation applicable to all the delayed returns?
No, it is only applicable to returns that were condoned and submitted electronically on or before March 31, 2024. Any returns filed after that date or not with the approval of condonation are not covered.
3. Will interest be paid on the amount of money I will be refunded?
Generally, the refunds will be made as per the usual taxation regulations, possible with interest. Nonetheless, individual regulations like PAN-Aadhaar linkage can have an impact on the issuing of refunds.
4. How come that my return has already been re-assessed or finished?
This relaxation is not applicable in the case that assessment, reassessment, or revision procedures on your return have been already done on that assessment year.
5. Should I make another application to take advantage of this extension?
No. The department will work with eligible returns according to the new schedule – you do not have to make a new request.
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