New Guidelines on Condoning Delays in Filing Income Tax Returns
The Central Board of Direct Taxes (CBDT) has taken a significant step forward by issuing Circular No. 11/2024 on October 1, 2024. This circular introduces new guidelines for condoning delays in filing income tax returns (ITRs) that claim refunds or carry forward losses, as per Section 119(2)(b) of the Income-tax Act, 1961. This update supersedes all previous instructions and sets a structured approach to managing delay-related claims based on defined monetary thresholds.
Key Highlights of the Circular
Monetary Limits for Authorities
- Principal Commissioners of Income Tax (Pr. CsIT/CsIT): Authorized to handle claims of delay in filing ITRs up to ₹1 crore.
- Chief Commissioners of Income Tax (CCsIT): Responsible for claims between ₹1 crore and ₹3 crores.
- Principal Chief Commissioners of Income Tax (Pr. CCsIT): Manage claims exceeding ₹3 crores.
Condonation of Delay in Verification
The Central Processing Centre (CPC), located in Bengaluru, is now empowered to process applications for condoning delays in the verification of ITRs.
5-Year Deadline for Claims
Applications for condonation of delay will not be accepted if filed beyond five years from the end of the relevant assessment year. This provision is applicable to all applications submitted from October 1, 2024, onwards.
Six-Month Timeframe
Authorities must dispose of applications within six months of their receipt, ensuring a prompt resolution for taxpayers.
Supplementary Claims and Court-Ordered Delays
The circular outlines specific conditions for handling supplementary refund claims and those delayed due to court orders, enhancing clarity and transparency in the process.
The Board retains the right to review grievances related to the application of these guidelines, emphasizing a commitment to a fair and efficient process for taxpayers seeking delayed ITR refunds or loss carry-forward approvals.
Official Notification Details
Circular No. 11/2024
Dated: 1st October 2024
F. No. 312/63/2023-OT
Government of India
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes
Subjects Covered
- Claims Management: The circular provides comprehensive guidelines concerning the acceptance or rejection of applications claiming refunds or loss carry forward under section 119(2)(b) of the Income-tax Act.
- Authority Powers:
- Pr. CsIT/CsIT handle claims up to ₹1 crore.
- CCsIT manage claims over ₹1 crore but below ₹3 crores.
- Pr. CCsIT address claims above ₹3 crores.
- CPC in Bengaluru can condone delays in verification.
- Filing Timelines:
- Applications must be submitted within five years from the end of the assessment year.
- Decisions on applications should ideally be made within six months of receipt.
- Review and Grievances: The Board will oversee any grievances related to the implementation of these guidelines.
This circular marks a pivotal change in the handling of delayed ITR submissions, aiming to ensure a more efficient and taxpayer-friendly process moving forward. The guidelines simplify the application procedure and clarify the roles of various authorities in managing claims related to delays in filing income tax returns.
