CBDT Notification: The Income Tax Department has taken a major decision to speed up and simplify the refund process to provide relief to taxpayers. The Central Board of Direct Taxes (CBDT) issued a notification on October 27, 2025, expanding the powers of the Centralized Processing Center (CPC) in Bengaluru. The CPC will now be able to automatically correct computational or accounting errors found in taxpayers’ returns.
Refund delays will be eliminated
Previously, taxpayers had to contact multiple officials to resolve issues such as delayed refunds, incorrect tax credits, or assessment errors. Now, the CPC has the authority to automatically correct these errors, which previously required the permission of the relevant assessing officer. This will significantly speed up the processing of tax returns and the issuance of refunds.
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New Powers Granted to the CPC
According to the new notification, the CPC is no longer limited to processing but has also been granted powers related to assessment and rectification. This means that if an error is found in a tax return or refund calculation, the CPC will be able to automatically correct it. Additionally, the powers of Additional, Joint, and Subordinate Assessing Officers have also been expanded, enabling faster resolution of pending cases in various jurisdictions.
No Longer Waiting for Corrections
Taxpayers will no longer have to apply at multiple levels to correct errors in their refund or interest calculations. Experts believe that errors in refund determination or interest calculation under Section 244A can now be corrected immediately. This will ensure the timely issuance of refunds and provide relief to taxpayers.
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This Step Will Save Time
This move by the CBDT will not only save time but will also increase transparency in the system. Now, every correction and adjustment will be electronically recorded in the CPC system. This will reduce the likelihood of manual errors and increase accountability across tax administration. It will also strengthen faceless and technology-based tax administration.
Direct Benefits to Taxpayers
This change will provide several benefits to taxpayers. They will no longer have to visit different offices for minor errors and will receive refunds on time. Additionally, data accuracy will increase, and tax records will be more organized. According to experts, this move is a significant improvement towards making the tax system more efficient and reliable.