What Happens After You File Your ITR? Verification, Processing, and Refund Timeline

Filing an income tax return feels like the end of a process. You have gathered your documents, entered your numbers, computed your tax, paid what was owed, and clicked submit. The acknowledgement number appears on the screen. The anxiety of the deadline recedes. But for most taxpayers, particularly those expecting a refund, the filing is not the end. It is the beginning of a second process that can last anywhere from three weeks to several months, depending on the return's complexity and the department's workload.

Understanding what happens after you file, and what you should do at each stage, makes the difference between a clean outcome and an unnecessarily stressful one. The sequence is predictable: verification, processing, intimation, and if applicable, refund. Each stage has defined timelines, specific actions required from the taxpayer, and potential complications that can be avoided with the right preparation. This article walks through the entire post-filing sequence for AY 2026-27.

Step 1: E-Verification

Filing and verification are two separate steps. A return that has been submitted but not verified is not treated as a filed return. The income tax department regards an unverified return the same way it regards a return that was never filed at all, which means all the consequences of non-filing, including late fees, interest, and loss of carry-forward rights, apply if verification is not completed.

The deadline for e-verification is 30 days from the date of filing. If you file on 15 July 2026 and do not verify by 14 August 2026, the return is treated as not filed. Extensions to this window are not given automatically. If you miss the 30-day window, you must file a condonation request with the income tax department to request that the late verification be accepted, which is a discretionary process with no guaranteed outcome.

E-verification can be done through five methods:

• Aadhaar OTP: The fastest method. An OTP is sent to the mobile number linked to your Aadhaar. Enter it on the portal. Verification is instant. This requires your Aadhaar mobile number to be currently active and linked.

• Net banking: Log in to your net banking account of any of the approved banks. Navigate to the income tax section and complete verification. Works even if your Aadhaar mobile is not linked or has changed.

• Demat account-based verification: If your demat account details are registered on the income tax portal, you can receive an OTP on your registered mobile for demat-based verification.

• Bank account-based EVC (Electronic Verification Code): An EVC is sent to the mobile number linked to your pre-validated bank account on the portal. This works for accounts with HDFC Bank, ICICI Bank, SBI, Kotak, Axis, and several others.

• ITR-V physical submission: If electronic verification is not possible, you can download the ITR-V (the signed acknowledgement form), sign it in blue ink, and send it by ordinary or speed post to the CPC (Centralised Processing Centre) in Bengaluru. The ITR-V must reach CPC within 30 days of filing. This is the least recommended method because it is slower and any postal delay risks the verification being treated as late.

Complete e-verification on the same day you file. There is no reason to delay it, and every day without verification is a period during which the return can be invalidated.

Verification must be completed within 30 days of filing. An unverified return is treated as not filed at all, with all the consequences that follow. E-verify on the same day you submit, not days later.

Once the return is verified, the portal sends a confirmation email and SMS to your registered email address and mobile number. The return status on the portal changes from Filed and Not Verified to Filed and Verified. You will also receive an acknowledgement number, which is the permanent reference number for your return for that assessment year. Keep this number.

After verification, the return enters a queue for processing at the Centralised Processing Centre in Bengaluru, which handles bulk processing of all ITRs filed electronically. The CPC is the first point of automated and manual review. Your return sits in this queue until it is taken up for processing, which can begin within days for simple returns filed early in the season, or can take longer during the peak period around and after the 31 July deadline.

During this queued period, the return status on the portal will show as Verification Successful. No further action is required from you at this stage. The department is processing the return.

The Processing Stage: What the CPC Does

Processing is the automated review of the return by the CPC's systems. It is not a manual audit; it is a systematic computer-based check of the return's arithmetic, its internal consistency, and its match with data the department already holds.

The CPC processing checks four broad categories:

• Arithmetic verification: The system checks that the numbers in the return add up correctly. If the return claims a net income of Rs 8 lakh but the underlying schedules total to Rs 9.2 lakh, that discrepancy will be flagged.

• AIS and TIS data matching: The filed return is compared against the Annual Information Statement. If the AIS shows dividend income of Rs 45,000 but the return declares Rs 30,000, the discrepancy is flagged. If the AIS shows capital gains from a mutual fund redemption that does not appear anywhere in Schedule CG, it is flagged.

• TDS and TCS credit matching: TDS credits claimed in the return are verified against the amounts deposited by deductors. If you claim Rs 25,000 TDS credit but the deductor deposited only Rs 20,000 in respect of your PAN, only Rs 20,000 can be credited.

• Outstanding demand check: The system checks whether you have any outstanding tax demands from prior assessment years. If you do, the department may adjust the current year's refund (if any) against the outstanding demand.

Most simple returns, meaning salaried returns with one employer, standard income sources, and no complex capital gains, are processed without any discrepancy flags and result in an intimation within a few weeks. Returns with multiple income sources, capital gains, foreign assets, or potential AIS mismatches take longer because the system has more items to verify.

After processing, the CPC sends what is formally called an intimation under Section 143(1) of the Income Tax Act. This is not a notice and does not indicate a problem with your return by itself. It is a communication from the department confirming the outcome of the CPC's automated processing.

The Section 143(1) intimation can have three possible outcomes.

Outcome	What It Means	What You Should Do
No demand, no refund	The department's computed tax equals the tax you reported and paid; no balance in either direction	No action required; retain the intimation for your records
Refund due	The department's computation shows you paid more tax than your actual liability; the excess is to be refunded	Verify the refund amount matches your own computation; wait for the refund credit to your bank account
Demand raised	The department's computation shows a higher tax liability than what you reported and paid; the difference is a demand	Read the demand carefully; check whether it is due to an error in your return, a TDS mismatch, or an AIS discrepancy; respond within the prescribed time

The intimation is sent to your registered email address and is also available on the income tax portal under e-File, then Income Tax Returns, then View Filed Returns, then the relevant assessment year. If a demand has been raised, the portal will also show it under Pending Actions.

A very important point about Section 143(1) demands: many arise not from genuine errors but from TDS mismatches where the deductor has not yet uploaded their TDS return or has uploaded it with incorrect data.

If your TDS credit has been disallowed because the deductor's return does not match, the first step is to contact the deductor and ask them to correct their TDS return. Once they file a corrected return, the TDS will appear in your Form 26AS and the demand can be rectified through a rectification request on the portal under Section 154.

How to Respond to a Section 143(1) Demand

If a demand is raised, you have 30 days from the date of the intimation to respond. The response options are available on the portal under the Pending Actions tab.

The first step is to carefully compare the department's computation in the intimation with your own filed computation. The intimation shows both the income and tax as you reported them and the income and tax as the department computed them. The difference between the two sides is the demand. Understanding precisely where the difference arose is essential before deciding how to respond.

If you agree with the demand: You can pay the demand using Challan 280 and mark the payment against the specific demand. After payment, the demand status on the portal updates.

If you disagree with the demand: The portal allows you to file a response disagreeing with the demand and to provide an explanation. Common grounds for disagreement include a TDS mismatch that will be corrected by the deductor, a pre-paid tax that was not captured correctly, or an AIS data point that was incorrect and has been flagged through AIS feedback.

If the demand arises from a genuine error in your return: File a revised return (available until 31 March 2027 for AY 2026-27) correcting the error. After the revised return is processed, the demand may be reduced or eliminated. Do not simply pay an incorrect demand without first assessing whether a revised return is the more appropriate response.

The Refund Process: How Long It Takes and Why

For taxpayers expecting a refund, the natural question after filing is when the money will arrive. The short answer is that most refunds for straightforward returns filed early are credited within 4 to 8 weeks of the Section 143(1) intimation being issued. The realistic range, including complex returns and peak-season filings, is anywhere from 3 to 16 weeks after filing.

The refund is credited directly to the bank account that you prevalidated and nominated on the income tax portal. This is a critical practical point: the refund goes to the bank account registered on the portal, not necessarily to the account from which you paid your tax. If you have changed banks or your account number has changed, updating it on the portal before filing is essential.

How to verify your refund bank account on the portal: Log in to incometax.gov.in, go to My Profile, then Bank Account. The pre-validated bank account linked as your refund account will be shown. If it needs to be updated, add the new account, validate it, and set it as the refund account before submitting your return.

Refunds are processed by the SBI (State Bank of India) on behalf of the income tax department. Once the intimation is issued with a refund amount, SBI processes the credit to the taxpayer's bank account. You will receive an SMS notification from NSDL or the income tax department when the refund is dispatched, typically with a refund sequence number that you can use to track the credit.

Stage	Typical Timeframe	What You Can Check
Return filed and verified	Day 0	Portal shows Filed and Verified status
Return taken up for processing	1 to 4 weeks after filing (faster for early filers)	Status shows Under Processing
Section 143(1) intimation issued	3 to 8 weeks after filing for most returns; can extend to 12 to 16 weeks for complex returns	Intimation received on registered email; available on portal
Refund dispatched (if applicable)	1 to 3 weeks after intimation	SMS notification from department; NSDL refund tracking at tin-nsdl.com
Refund credited to bank account	1 to 5 business days after dispatch	Bank account statement; NSDL tracking

There are two ways to track a refund after the Section 143(1) intimation has been issued.

On the income tax portal: Log in, go to e-File, then Income Tax Returns, then View Filed Returns, and select AY 2026-27. The return status will show as Refund Issued, Refund Failure (if the bank account is incorrect), or the relevant processing status. The portal also shows the refund amount and the date of dispatch once it has been processed.

On the NSDL TIN website: Go to tin.tin.nsdl.com and navigate to Services, then Refund Status. Enter your PAN and the assessment year (2026-27). This shows the specific refund batch and its status, including whether the amount has been dispatched and the transaction reference number for the bank credit.

Common reasons why a refund shows as dispatched but has not arrived in the bank account include: the bank account number on the portal is outdated or incorrect, the bank account has been frozen or deactivated, or the IFSC code has changed following a bank merger. If the refund shows as failed, the department typically credits the amount back and the taxpayer can request a reissue through the portal after updating the bank details.

Defective Return Notice: Section 139(9)

A defective return notice under Section 139(9) is issued when the CPC finds that the return, while filed, is not complete or correct in a way that makes it incapable of being processed. Common triggers include filing the wrong ITR form (for example, ITR-1 when the income requires ITR-2), incomplete schedules where required data is missing, inconsistent figures between different schedules, or a return filed without a valid PAN-Aadhaar link when required.

The notice gives you 15 days to correct the defect. If you respond within the deadline with a corrected return, the corrected return is treated as filed from the original date of submission. If you do not respond, the original return is treated as invalid, with all the consequences of non-filing.

A defective return notice is different from a Section 143(1) demand. The demand arises after processing is complete; the defective notice arises when the return cannot be processed at all. Respond to Section 139(9) notices promptly, within the 15-day window rather than waiting until the last day.

When Processing Goes Beyond Section 143(1): Scrutiny Assessments

A small proportion of returns, selected by the department's risk management system, are taken up for detailed scrutiny rather than being disposed of through the automated Section 143(1) processing. Scrutiny under Section 143(2) involves the department asking for documents and explanations to support the income and deductions claimed in the return.

A scrutiny notice must be served within 6 months from the end of the financial year in which the return is filed. For AY 2026-27, the last date for issuing a scrutiny notice is 30 September 2027. If no notice is received by that date, the return cannot be opened for scrutiny.

Scrutiny does not necessarily mean something is wrong with the return. The selection criteria are automated and risk-based. Returns with large refund claims, significant capital gains, high-value transactions, or certain income patterns may be selected for scrutiny as a matter of routine risk management. Responding to a scrutiny notice by providing complete, organised documentation is the standard process.

Assessment Type	Section	Trigger	Time Limit for Notice
Summary assessment (automated processing)	143(1)	All filed returns; automated CPC processing	No notice issued; intimation within 12 months of filing (ideally sooner)
Defective return	139(9)	Return filed but with a material defect preventing processing	Notice issued; 15 days to respond
Scrutiny assessment	143(2)	Risk-based selection by department's system; also mandatory for certain categories	Notice must be served within 6 months from end of the FY of filing
Best judgment assessment	144	Non-filing or persistent non-compliance; department assesses based on available information	Typically occurs after notice compliance failure; longer process

How to Track the Status of Your Return on the Portal

The income tax portal provides real-time status updates for your return at every stage. The status description evolves as the return moves through each stage, and knowing what each status means prevents unnecessary anxiety about where the return stands.

Portal Status	What It Means	Action Required
Filed and Not Verified	Return submitted but e-verification not yet completed	Verify immediately; 30-day window applies
Verification Successful	E-verification accepted; return queued for processing	None; wait for processing
Under Processing	CPC is actively processing the return	None; allow processing to complete
Processed	Processing complete; no discrepancies found; no refund and no demand	Retain intimation; no further action
Processed with Refund Determined	Processing complete; refund amount determined	Verify bank account details; wait for refund credit
Processed with Demand Determined	Processing complete; a tax demand has been raised	Review intimation; respond through portal within 30 days
Defective	Return cannot be processed due to a defect	Respond to Section 139(9) notice within 15 days
Refund Issued	Refund dispatched to bank	Check bank account; if not received in 5 days, track via NSDL
Refund Failure	Bank account details incorrect or account inactive	Update bank account on portal; request refund reissue

Correcting a Filed Return: The Revised Return

If you discover an error in your return after filing, either because you noticed it yourself or because the Section 143(1) intimation revealed a discrepancy, you can file a revised return under Section 139(5). For AY 2026-27, the revised return can be filed until 31 March 2027, a significant improvement over the previous 31 December deadline that was changed by Budget 2026.

A revised return replaces the original return entirely. The revised return should include all the correct information, not just the corrections. When filing the revised return on the portal, you will be asked to enter the original return's acknowledgement number and date of filing. The portal pre-fills many fields from the original return.

Common situations where a revised return is appropriate include: a missing dividend income entry that was not declared, an incorrect capital gains computation, a forgotten interest income from a small FD, an error in the house property income calculation, or claiming a deduction in the wrong section. A revised return can be filed any number of times until the deadline, with each revision replacing the previous version.

A revised return cannot be used to disclose income that was deliberately concealed. It is intended for genuine mistakes and omissions. If the error involves income that the AIS shows but the original return missed, filing a revised return proactively is strongly preferable to waiting for the department to raise a demand.

For Investors Specifically: Common Post-Filing Issues

Investors with capital gains, mutual fund transactions, and dividend income encounter specific post-filing complications that salaried employees without investment income rarely face.

• AIS mismatch on capital gains: If your return's Schedule CG figures do not match the AIS data, the Section 143(1) processing will flag a discrepancy. This is the most common investor-specific complication. If the AIS figure is higher than what you reported and the difference is due to incorrect reporting by the broker or AMC, the first step is to use the AIS feedback mechanism on the portal to submit a correction. If the feedback has already been submitted and the AIS was updated before filing, there should be no mismatch. If the feedback was submitted but the processed value in TIS still differs, retain documentation of your own correct figures and respond to any subsequent notice with your broker or RTA statement.

• TDS mismatch on equity sale proceeds for NRIs: NRI investors whose equity sale proceeds had TDS deducted at source sometimes find that the TDS amount in Form 26AS does not match the TDS amount reflected in the broker's transaction confirmation. This is typically a timing issue where the broker has not yet filed the quarterly TDS return. The TDS credit can only be claimed in the return for the amount that appears in Form 26AS at the time of processing. If TDS is missing, claim only what is in Form 26AS and wait for the corrected TDS credit to appear before filing a rectification.

• Dividend income demand from unlisted company dividends: Dividends from unlisted companies are not always captured in AIS because the company may not have filed its TDS return correctly. If you received dividends from any unlisted company, verify whether they appear in your AIS and declare them in Schedule OS regardless. A missing declaration that later appears in the AIS will generate a demand.

• Refund adjustment against prior year demand: If you had an outstanding tax demand from a previous assessment year and you are now claiming a refund for AY 2026-27, the department may adjust the refund against the prior demand before crediting anything to your account. The adjustment is disclosed in the Section 143(1) intimation. If you believe the prior demand was incorrectly raised, you can challenge it through the rectification process under Section 154 or through the Dispute Resolution Scheme, but this is a separate process from the current year's refund.

Complete Timeline from Filing to Refund

The following is a realistic timeline for AY 2026-27 for an investor who files before or by 31 July 2026.

Week	Stage	Taxpayer Action
Week 0 (filing day)	Return submitted; e-verification completed on same day	Verify bank account on portal; keep acknowledgement number
Weeks 1 to 3	Return queued at CPC; status shows Verification Successful	No action; monitor portal status periodically
Weeks 3 to 8 (most returns)	CPC processes the return; Section 143(1) intimation issued	Review intimation; check for demand or refund determination
If refund: Weeks 9 to 12	Refund dispatched by SBI; credited to bank account	Track via NSDL; check bank account
If demand: Within 30 days of intimation	Taxpayer responds to demand or pays	Assess demand; file revised return if appropriate; pay if correct
If revised return filed: Re-processing	Revised return enters processing queue; new 143(1) issued	Monitor portal for updated status and revised intimation
Until 31 March 2027	Revised return window open for AY 2026-27	Correct any errors discovered after original filing

The 12-Month Processing Deadline

The income tax department is required to process a return and issue the Section 143(1) intimation within 12 months from the end of the financial year in which the return is filed. For returns filed for AY 2026-27 in FY 2026-27, the department has until 31 March 2028 to issue the intimation.

In practice, the department processes the vast majority of returns far within this 12-month window. Returns filed early in the season (June and July 2026) are typically processed within 8 to 12 weeks. Returns filed in the last days of July, during peak season, may take somewhat longer due to volume. Returns filed as belated returns after 31 July will generally be processed after those filed on time, though they will still receive an intimation within the 12-month window.

If you have not received any intimation for more than six months after filing, you can raise a grievance on the income tax portal under the Grievance tab. The grievance should state your PAN, assessment year, the date of filing, the acknowledgement number, and the fact that processing has not been completed. This typically triggers the CPC to prioritise your return.

Disclaimer: This article is for educational purposes only and does not constitute tax or financial advice. Processing timelines, portal statuses, and regulatory provisions cited reflect the position as understood for AY 2026-27 as of June 2026 and are subject to change through CBDT notifications. Portal features and processing systems are updated periodically. Consult a qualified chartered accountant for advice specific to your return.