Behind the Scenes at CPC: The Journey of Your ITR

Once an Income Tax Return (ITR) is filed, few taxpayers assume that the process is complete.

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However, the real work begins at the Centralized Processing Centre (CPC), Bengaluru, where the ITR undergoes a series of checks before any refund is issued/ demand is raised.

Understanding this behind-the-scenes process can help taxpayers manage expectations and ensure compliance.

Filing & Verification

The process starts when a taxpayer files an ITR electronically. However, filing alone does not start processing. The return must be verified—either through e-verification (using Aadhaar OTP, net banking, etc.) or by sending a signed physical copy of ITR-V to CPC within 30 days.

Only after successful e verification does CPC begin processing of the ITR.

Preliminary Scrutiny

Once verified, CPC performs a preliminary assessment under Section 143(1) of the Income Tax Act. This is a non-intrusive, automated check that compares:

¢ The data given by the taxpayer.

¢ Information available with the department (e.g., Form 26AS, AIS)

¢ Deductions and exemptions claimed.