Categories: Others

Limits for Condonation of Delayed of Refund Claim, C/F Loss

New Monetary Limits for Condonation of Delayed Filing of Refund Claims & C/F Losses

  • Central Board of Direct Taxes has issued new monetary limits in respect of condonation of delay in filing refund claim and claim of carry forward of losses u/s 119(2)(b) of the Income-tax Act, 1961. Now Lower Income tax authorities empowered to deal higher refunds w.e.f. 01s June 2023: Circular 7/2023.
  • Where the time period of filing of return as per section 139 has expired and assesse couldn’t claim Income Tax refund or loss, due to genuine hardship, section 119(2)(b) empowers claim of refund/ loss as per procedure laid down in Circular 9/2015 dated 09-06-2015.

Set-Off and Carry Forward & Set-Off of Losses

Condonation of Delayed income tax refund.

  • The Condonation application for claim of refund or supplementary claim of refund or loss has to be made with in six ears (excluding period for which proceedings were pending before Court) from end of relevant Ay & such applications for condonation are required to be processed within Six months from end of month in which application is made.
  • Income Tax Refund claims u/s 119(2)(b) can be made only for excess amount of Tax deducted at source / Tax collection at source/advance tax/self-assessment tax. No Interest is allowed on income Tax refund claim or supplementary refund claim.
  • Tax authority has to ensure that the refund/loss claim is correct and genuine and there was genuine hardship. The Income Tax authority empowered to deal with delayed refund/loss claim can direct jurisdictional Assesse Officer to conduct enquiry or scrutinize to ascertain correctness of claim.

Increase in Powers to deal refund/loss w.e.f. 01-06-2023.

  • Power of Principal Commissioners of Income-tax/Commissioners of Income-tax to deal with claims increased from INR 10,00,000/- to 50,00,000/- per Ay.
  • Commissioners of Income-tax power to deal with Income Tax refund/loss claims increased from INR 50,00,000/- to 2,00,00,000/-. Commissioners of Income-tax can’t deal with claims below INR 50,00,000/-.
  • Principal Commissioners of Income-tax power to deal with Income Tax refund/loss claims increased from INR 50,00,000/- to 3,00,00,000/-.. Principal Commissioners of Income-tax can’t deal with claims below INR 2,00,00,000/-.
  • Central Board of Direct Taxes now shall deal with claims above INR 3,00,00,000/-..only (as against earlier limit of refund/loss claims above INR 50,00,000/-)

Central Board of Direct Taxes also has powers to examine grievances

The Central Board of Direct Taxes also has powers to examine grievances under this Circular for passing or not passing orders by Income Tax authorities.

  • Principal Commissioners of Income-tax/Commissioners of Income-tax shall be vested with the powers of acceptance/rejection of claims or applications if the amount of the claims is not exceeds INR 50,00,000/- for any one Ay.
  • Chief Commissioners of Income-tax shall be vested with the powers of acceptance/rejection of applications/claims if the amount of claims exceeds INR 50,00,000 However is not more than INR 2 Cr for any 1 Ay.
  • Principal Chief Commissioners of Income-tax shall be vested with the powers of acceptance/rejection of such applications/claims if the amount of claims exceeds INR 2 Cr but is not more than INR 3 Cr for any one Ay.
  • Claims or applications for amounts more than INR 3 Cr shall be considered by the Central Board of Direct Taxes.

The revised monetary limits for applications/claims in respect of the competent authorities shall be applicable to the applications/ claims filed on and after June 1, 2023. Central Board of Direct Taxes also given guidelines specified in Income tax Circular No. 09 dated 09-06- 2015 shall remain unchanged. Circular No. 07/2023 Date: 31/05/2023

Click Here To Read The Income Tax Circular 

Rajput Jain & Associates

Rajput Jain & Associates is a Chartered Accountants firm, with it's headquarter situated at New Delhi (the capital of India). The firm has been set up by a group of young, enthusiastic, highly skilled and motivated professionals who have taken experience from top consulting firms and are extensively experienced in their chosen fields has providing a wide array of Accounting, Auditing, Taxation, Assurance and Business advisory services to various clients and their stakeholders. Rajput jain & Associates, a professional firm, offers its clients a full range of services, To serve better and to bring bucket of services under one roof, the firm has merged with it various Chartered Accountancy firms pioneer in diversified fields. We have associates all over India in big cities. All our offices are well equipped with latest technological support with updated reference materials. We have a large team of professionals other than our Core Team members to meet the requirements of our prospective clients including the existing ones. However, considering our commitment towards high quality services to our clients, our team keeps on growing with more and more associates having strong professional background with good exposure in the related areas of responsibility.

Recent Posts

New cheque clearing process starting from Oct 4, 2025

New cheque clearing process in India starting from October 4, 2025 Existing System (Until Oct 3, 2025) : Clearing Method:… Read More

1 day ago

Overview on Tax Treatment on Gratuity in India

Overview on Tax Treatment on Gratuity in India What is Gratuity? Gratuity is a lump sum paid by an employer… Read More

1 day ago

Taxation Comparison: Gold Coin vs Gold Jewellery

Taxation Comparison: Gold Coin vs Gold Jewellery Tax Aspect Gold Coin Gold Jewellery ITR Reporting Treated as a capital asset.… Read More

4 days ago

Crypto Taxation & ITR Reporting Guide for India

Crypto Taxation & ITR Reporting Guide Tax on Profits from Crypto (Virtual Digital Assets)- Taxation U/s 115BBH Applicability on Virtual… Read More

4 days ago

Savings Account Rules for Transactions to Avoid Tax Scrutiny

Savings Account – Rules for Transactions to Avoid Income Tax Scrutiny The Income Tax Department monitors high-value transactions through banks’… Read More

4 days ago

Quick Guide on GST Marginal Scheme

Quick Guide on GST Marginal Scheme What is GST Marginal Scheme Meaning : The GST Margin Scheme is applicable primarily… Read More

4 days ago
Call Us Enquire Now