CBDT Introduces New Rules for Delayed ITR Filing
CBDT Introduces New Rules for Delayed ITR Filing
Blog Article
The Central Board of Direct Taxes (CBDT) has recently implemented revised guidelines for condoning late income tax return (ITR) filings. These changes aim to streamline the process for taxpayers seeking refunds or carrying forward losses due to missed deadlines.
Tiered Authority for Claim Approval
The authority to approve or reject refund claims has been delegated based on the claim amount:
- Claims up to ₹1 crore: Principal Commissioners of Income Tax
- Claims between ₹1 crore and ₹3 crore: Chief Commissioners of Income Tax
- Claims exceeding ₹3 crore: Principal Chief Commissioners of Income Tax
Additionally, the Bengaluru Central Processing Centre (CPC) is now empowered to process delayed ITR-V verification applications.
Time Limit and Processing Requirements
Taxpayers have a window of five years from the end of the relevant assessment year to submit condonation applications. This applies to applications filed after October 1, 2024.
Authorities are expected to process these applications within six months. To secure approval, taxpayers must provide a valid reason for the delay and demonstrate that it caused hardship. Further investigation may be conducted if necessary.
Special Considerations
Court-Ordered Refunds: The five-year limit excludes the period during which a case was pending in court. Taxpayers have six months from the court ruling to apply for condonation.
Supplementary Refunds: Additional refund claims filed after the initial assessment are also covered under these rules.
Note: No interest will be paid on late refund claims.
Conclusion
While the new guidelines provide some flexibility for taxpayers who have missed ITR filing deadlines, it's essential to prioritize timely filing to avoid potential complications. Consulting with a tax professional can help ensure compliance with these revised rules and maximize refund claims.
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