Last reviewed: 25 September 2026. Update as on 25 September 2026: the 31 July (ITR-1/ITR-2) and 31 August (non-audit ITR-3/ITR-4) due dates have both closed. Belated returns can be filed until 31 December 2026, and revised returns until 31 March 2027. With the main filing deadlines behind us, the filing wave has become a processing wave. What lands next in your inbox is the intimation under Section 143(1): a refund, a demand, or a quiet acceptance. The weeks after filing have their own deadlines that are shorter and easier to miss than the filing deadline itself. Here is exactly what happens after you press submit, and what to do at each stage. The return and its processing for AY 2026-27 stay under the Income-tax Act, 1961; where interest runs for a period after 1 April 2026, the Income-tax Act, 2025 section is noted.
Step zero: e-verify, or nothing else happens
Processing starts only when the return is verified. You have 30 days from the date of uploading to e-verify (Aadhaar OTP, net banking, a pre-validated bank or demat account EVC, or DSC) or to post the signed ITR-V to CPC, Bengaluru. Miss the window and the return is treated as invalid, that is, as never filed, unless a condonation request is accepted. There is a subtler cost too: where verification comes after 30 days, the date of verification is treated as the date of furnishing the return, which can quietly convert an on-time return into a belated one, with the Section 234F fee, loss of carry-forwards and new-regime lock that follow. If you filed close to a deadline, check now that the status reads "Return verified". (Missed the due date altogether? See our companion guide on due dates, belated returns and Section 234F.)
The four ways processing can end
CPC's automated processing compares your return with its own computation and with the TDS and transaction data it already holds. The intimation that results says one of four things:
| Outcome | What it means | Your action |
|---|---|---|
| No demand, no refund | Return accepted as filed; the two columns match | Save the intimation with your records. Done for the year, subject to the scrutiny window below. |
| Refund determined | Taxes paid (TDS, TCS, advance tax, self-assessment) exceed the final liability | Confirm the bank account is pre-validated; track credit; check the refund interest included. |
| Demand payable | CPC's computation is higher, usually a mismatch or a disallowed claim | Reconcile line by line. Pay within 30 days if correct; rectify or respond if not. |
| 143(1)(a) proposal first | Before processing, CPC proposes an adjustment: arithmetic errors, internally inconsistent entries, Form 26AS/AIS mismatches, or claims inconsistent with a late return | Respond on the portal within 30 days with your agreement or objection and evidence; silence means the return is processed with the adjustment. |
Reading the 143(1) intimation like a professional
The intimation arrives from CPC on your registered email (password: PAN in lower case + date of birth as DDMMYYYY) and sits under e-File → Income Tax Returns → View Filed Returns on the portal. It shows two columns, "as provided by the taxpayer" and "as computed under Section 143(1)". Work down them in this order:
- Income heads: does any head differ? A difference here usually traces to an AIS entry you did not report (bank interest and dividends are the classic ones).
- Deductions: claims can be restricted where they are inconsistent with the regime applicable or with a belated return (Section 80AC bars most profit-linked deductions in late returns).
- Tax credits: TDS/TCS granted versus claimed. A shortfall here is very often the deductor's filing error, not yours.
- Interest: 234A/234B/234C recomputed by CPC, and refund interest allowed on your refund.
The statutory outer limit for this intimation is nine months from the end of the financial year in which the return is furnished; for returns filed during FY 2026-27, that is 31 December 2027. If no intimation comes by then, the acknowledgement operates as the intimation and the return stands accepted as filed.
Refunds: what speeds them up, what holds them back
Two prerequisites, both in your control: the return must be e-verified, and the refund account must be pre-validated and PAN-linked on the portal. Simple, fully matched returns have been processing quickly this season, sometimes within days, while returns carrying mismatches or unusually large deduction claims are routinely held for verification. Track status under View Filed Returns on the e-filing portal.
NRIs: the refund is credited to a pre-validated Indian account, usually the NRO account, since a refund cannot be sent to a foreign bank account. Validate the NRO account on the portal before filing; our NRI ITR checklist covers the refund and TDS points, and our CA for NRIs service follows up on refunds that stall.
| Common reason a refund is stuck | The fix |
|---|---|
| Bank account not pre-validated, closed, or IFSC changed after a bank merger | Re-validate the account under My Profile → Bank Account, then raise a Refund Reissue request under Services. |
| Name on bank account does not match PAN records | Correct the records with the bank (or use another PAN-matched account) and re-validate. |
| Outstanding demand of an earlier year | Look for the Section 245 intimation; respond within 30 days agreeing or disagreeing, else the refund is adjusted against the demand. |
| High or inconsistent deduction claims flagged by the department's AIS-based checks | Respond to the e-campaign/verification communication; if a claim was genuinely wrong, revise the return (open till 31 March 2027 for AY 2026-27) rather than defend the indefensible. |
| Return not e-verified at all | Verify immediately or file a condonation request; processing has not even begun. |
Worked example: refund interest. Priya filed her ITR-2 on 28 July 2026 (within the due date) with excess TDS of Rs 42,000. CPC grants the refund on 15 October 2026. Interest runs from 1 April 2026 to October 2026 (seven months, with part of a month counted as full) at 0.5% per month: Rs 42,000 × 0.5% × 7 = Rs 1,470, so Rs 43,470 lands in her account. The return is for AY 2026-27, but because the whole interest period falls after 1 April 2026, section 536(2)(g) of the Income-tax Act, 2025 means this interest is paid under section 437 of the 2025 Act (old section 244A); the rate and method are the same. Contrast two variations: had she filed belatedly on 10 September 2026, interest would run only from the filing date; and if her refund were, say, Rs 4,000 against tax determined of Rs 80,000, no interest would be due at all because the refund is below 10% of the tax determined. Either way, the Rs 1,470 is taxable as income from other sources in the year of receipt, a line item people forget in next year's return.
If the intimation shows a demand
- Reconcile before you pay. Match the intimation against Form 16/16A, Form 26AS and AIS; our guide to reconciling Form 16, 26AS and AIS shows the exact checks. A large share of CPC demands are TDS-credit mismatches, not real tax.
- If the demand is correct, pay through e-Pay Tax and submit the response under Pending Actions → Response to Outstanding Demand. A demand unpaid beyond 30 days of the Section 156 notice attracts interest at 1% per month, charged under Section 220(2) of the 1961 Act, and for any period after 1 April 2026 under section 411(3) of the 2025 Act.
- If it is a processing error (a missed TDS credit, a challan not matched, an arithmetic slip), file a rectification request under Section 154 (available for four years from the end of the financial year of the intimation) and select "Disagree with demand" with documented reasons.
- If the deductor caused it, the lasting fix is a corrected TDS return at their end; follow up in writing and keep the trail.
- Expecting a refund next year? An unresolved demand will meet it via Section 245 set-off, so deal with it now, on the record.
When it becomes more than processing
- Defective return, Section 139(9): 15 days to cure the defect (extendable on request). Ignore it and the return is treated as invalid.
- Scrutiny, Section 143(2): for returns furnished in FY 2026-27, the notice can come up to 30 June 2027. A processed refund does not close the year, so keep computations, broker statements, deduction proofs and capital-gains workings for several years; reassessment windows stretch to five-plus years in larger cases.
- e-Campaign nudges: SMS/email asking you to confirm an AIS entry or a deduction claim are handled on the compliance portal. Respond by the date stated; they are verification, not yet a notice.
Your 10-minute post-filing checklist
- Download and file the ITR-V/acknowledgement and your final computation.
- E-verify and confirm status reads "Return verified".
- Pre-validate (or re-check) the refund bank account and IFSC.
- Once a fortnight until processed: check Pending Actions and your registered email, including spam.
- When the intimation lands: open it the same week, compare both columns, diary any 30-day date.
- On refund credit: verify the amount including refund interest; note the interest for next year's return.
- Keep deduction and capital-gains proofs together with the acknowledgement, one folder per assessment year.
Common post-filing mistakes we see
- Filing on time but e-verifying late: the verification date becomes the filing date, and on-time becomes belated.
- Treating the intimation email as routine noise and discovering the 30-day window after it closed.
- Paying a CPC demand that was really the deductor's TDS filing error; fix the credit, not the symptom.
- Ignoring a 143(1)(a) proposal, letting the return be processed with an avoidable adjustment.
- Letting a small demand ride for years, then losing a large refund to a Section 245 set-off with interest on the demand.
- Assuming a credited refund ends the matter: the scrutiny window for this season's returns runs to 30 June 2027, and an inflated claim can still be questioned; where a claim was wrong, a revised return (till 31 March 2027) is the clean exit. If even that window is missed, the updated return (ITR-U) remains the last resort for taxes short-paid, though it cannot create or increase a refund.
Frequently asked questions
How long does an ITR refund take for AY 2026-27?
There is no fixed statutory time for the refund itself. Simple, matched returns are commonly processed within days to a few weeks of e-verification, while returns with TDS or AIS mismatches, high deduction claims or an outstanding demand take longer. The outer statutory limit for the Section 143(1) intimation is nine months from the end of the financial year of filing: 31 December 2027 for a return filed during FY 2026-27. Two prerequisites are fully in your control: e-verify the return within 30 days and keep a pre-validated bank account on the portal.
What is the password to open the 143(1) intimation PDF?
Your PAN in lower case followed by your date of birth in DDMMYYYY format, with no space in between. For PAN ABCDE1234F and date of birth 5 June 1990, the password is abcde1234f05061990. The intimation is emailed to your registered email ID and is also downloadable from the e-filing portal.
Is interest on my income tax refund automatic, and is it taxable?
Yes on both counts. Refund interest accrues at 0.5% per month (part of a month counts as full) on refunds of TDS, TCS and advance tax, from 1 April 2026 if the AY 2026-27 return was filed by its due date, or from the date of filing for a belated return. Because the interest period falls after 1 April 2026, it is computed under section 437 of the Income-tax Act, 2025 (old section 244A), as provided by the savings clause in section 536(2)(g). No interest is payable where the refund is less than 10% of the tax determined. The interest received is taxable as income from other sources, so disclose it in the return for the year of receipt.
What should I do if the intimation shows a demand I disagree with?
First reconcile the two columns of the intimation with your Form 16/16A, Form 26AS and AIS. If the demand flows from a processing error or a TDS credit the CPC has missed, file a rectification request under Section 154 on the portal and submit a response under "Response to Outstanding Demand" selecting "Disagree with demand" with reasons. If the mismatch is because your deductor filed its TDS return wrongly, the durable fix is getting the deductor to correct it. Do not simply ignore the demand: it can be adjusted against future refunds under Section 245 and attracts interest of 1% per month if it remains payable beyond 30 days of the notice. For periods after 1 April 2026 that interest is charged under section 411(3) of the 2025 Act (old section 220(2)).
The portal says refund issued but the money has not reached my bank. What now?
Check that the bank account selected for refund is pre-validated, active and linked to your PAN. Refunds fail where the account is closed, the IFSC has changed after a bank merger, or the name does not match PAN records. Fix the validation and raise a "Refund Reissue" request under Services on the e-filing portal. If the status shows the refund was adjusted, look for a Section 245 intimation explaining which year's demand it was set off against.
Can my return still be scrutinised after a refund is credited?
Yes. The 143(1) intimation is only an automated processing of the return, not an assessment. For returns furnished in FY 2026-27, a scrutiny notice under Section 143(2) can be issued up to 30 June 2027. Keep your computation, proofs of deductions and capital gains workings safely for several years; a clean processing does not close the year.
Our office handles post-filing work end to end: reading the intimation against your records, rectification and TDS-credit fixes, responses to demands and 245 set-offs, refund reissue follow-up, and replies to verification communications, with every submission documented for the record.
Refund, Demand & Rectification Support Income Tax Notice Management Talk to usThis article is educational material on the processing of returns for AY 2026-27 (FY 2025-26) under the Income-tax Act, 1961 as amended by the Finance Act, 2026, read with the savings provisions of the Income-tax Act, 2025, based on the law and portal functionality as of 25 September 2026. Timelines and figures can change by notification, and outcomes depend on facts; nothing here is a promise of any refund or result. Please verify the current position or take professional advice for your specific situation before acting.