Now it has become more easier to claim income tax refund in cases of filing of belated ITR. The Central Board of Direct Taxes (CBDT) has issued a circular on condonation of delay for Income Tax Refund and Carry forward of Loss notifying new limits for processing Condonation of Delay Applications.
The Central Board of Direct Taxes (CBDT) has issued a circular authorizing Income-tax authorities to admit applications or claims for refund and carry forward of loss and set off thereof under section 119(2)(b) of the Income-tax Act, 1961.
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Limit for Condonation of Delay For Claiming Income Tax Refund
In case of Claims up to Rs. 1 crore for any one assessment year the Principal Commissioners of Income-tax/Commissioners of Income-tax shall be vested with the powers of acceptance/rejection of such applications/claims if the amount of such claims is not more than Rs. 1 crore for any one assessment year.
In case of Claims exceed Rs. 1 crore but is not more than Rs. 3 crores for any one assessment year, the Chief Commissioners of Income-tax (CCsIT) shall be vested with the powers of acceptance/rejection of such applications/claims if the amount of such claims exceeds Rs.1 crore but is not more than Rs.3 crores for anyone assessment year.
In case of claims exceed Rs. 3 crore for any one assessment year, the Principal Chief Commissioners of Income-tax (Pr. CCsIT) shall be vested with the powers of acceptance/rejection of such applications/claims if the amount of such claims exceeds Rs.3 crores for anyone assessment year.
The circular provides that the Commissioner of Income-tax, Central Processing Centre (CPC), Bengaluru shall be vested with the powers for acceptance/rejection of petitions under section 119(2)(b) of the Income Tax Act seeking condonation of delay in verifying the return of income by sending the ITR-Y to centralized processing Cell (CPC), Bengaluru within the prescribed time limit.
Time Limit for filing application for claim of refund/loss
No condonation application for claim of refund/loss shall be entertained beyond five years from the end of the assessment year for which such application/claim is made. The time limit for tiling of such application within five years from the end of assessment year will be applicable for applications filed on or after 01.10.2024.
Conditions for claiming Refund
- The income of the assessee is not assessable in the hands of any other person under any of the provisions of the Act.
- No interest will be admissible on belated claim of refunds.
- The refund has arisen as a result of excess tax deducted/collected at source and/or excess advance tax payment and/or excess payment of self assessment tax as per the provisions of the Act.
What is the CBDT’s New Circular all about?
The Central Board of Direct Taxes (CBDT) has issued a circular on condonation of delay for Income Tax Refund and Carry forward of Loss notifying new limits for processing Condonation of Delay Applications.
What is the Limit for Condonation of Delay For Claiming Income Tax Refund?
In case of Claims up to Rs. 1 crore for any one assessment year the Principal Commissioners of Income-tax/Commissioners of Income-tax shall be vested with the powers of acceptance/rejection of such applications/claims if the amount of such claims is not more than Rs. 1 crore for any one assessment year.
What is the Time Limit for filing application for claim of refund/loss?
The time limit for tiling of such application within five years from the end of assessment year will be applicable for applications filed on or after 01.10.2024.
Circular No. 11/2024
Date: 01/10/2024