Apply Condonation delay in ITR filing for claim refund / C/F losse

CBDT Guideline: Apply for condonation delay in filing ITRs for claims refunds or C/F losses

New guidelines issued by the CBDT streamline the process for condonation of delay in filing ITRs specifically for claims related to income tax refunds or carrying forward losses. These Guideline Rules, which override all previous Income Tax instructions, grant different authorities power to accept or reject claims based on Claim amount, as well as set clear time limits for filing condonation applications. These new CBDT guidelines provide clarity on tax authorities responsible for handling delayed claims & due date within which Income Tax taxpayers may apply for condonation.

Main Points from the New Guidelines for apply for condonation delay in filing ITRs for claims related to refunds or carrying forward losses:

Authority Based on Claim Amount:

• Claims up to INR 1 crore: The Principal Commissioners of Income Tax are authorized to handle these claims.
• The Claims between INR 1 crore and INR 3 crore: Chief Commissioners will decide on these cases.
• Claims exceeding INR 3 crore: Principal Chief Commissioners will oversee applications for these Income tax claims.

ITR-V Verification Delay : Central Processing Centre (CPC) Involvement:

• Bengaluru’s Central Processing Centre is empowered to process applications related to the verification of ITR-V forms submitted late beyond the stipulated time period. Commissioner of Income-tax, Central Processing Centre, Bengaluru. Authorized to accept or reject petitions under section 119(2)(b) of the Income Tax Act for condonation of delay in verifying the return of income by submitting the ITR-V form to Commissioner of Income-tax, Central Processing Centre, Bengaluru, beyond the prescribed time limit.

Time Limits for Condonation Applications delay in filing TRs specifically for claims related to refunds or carrying forward losses:

• Taxpayers must submit condonation applications within 5 years from the end of the relevant AY for claims involving refunds or the carrying forward of losses.
• This time limit applies to applications filed on or after October 1, 2024.

In special Case of Court Orders: If the Income tax refund is based on a court order, 5 Year limit excludes the period during which the case was pending in court.

• Income tax Taxpayers must apply for condonation within 6 months from the date of the court order.
• Supplementary Refund Claims: Claims for additional income Tax refunds after the original assessment are covered under these condonation rules.

No Interest on Late Income tax Refunds:

• Income tax Taxpayers filing delayed Income tax refund claims will not be entitled to interest on refunded, even if the tax refund is approved.

In Summary of above CBDT Guidance:

A belated application for a supplementary refund claim (requesting an additional refund after the initial assessment) may be considered for condonation if:

• The taxpayer’s income is not assessable in the hands of another person.
• No interest will be paid on the delayed Income Tax refund.
• The Income Tax refund stems from excess TDS, TCS, advance tax, or self-assessment tax payments.

The authority to accept or reject these claims, within monetary limits, is delegated to Pr.CCsIT, CCsIT, Pr.CsIT, and CsIT, as per the designated thresholds.