The Central Board of Direct Tax (CBDT) has issued circular which provides comprehensive guidelines on condoning delays in filing income tax returns (ITRs) that claim refunds or seek to carry forward losses under Section 119(2)(b) of the Income-tax Act, 1961. This circular supersedes all previous instructions and sets clear procedures for handling such delays.
Key points include:
- Monetary Limits for Authorities:
- Principal Commissioners of Income Tax (Pr. CsIT/CsIT): Handle claims up to ₹1 crore.
- Chief Commissioners (CCsIT): Handle claims between ₹1 crore and ₹3 crores.
- Principal Chief Commissioners (Pr. CCsIT): Handle claims exceeding ₹3 crores.
- Verification Condonation: The Central Processing Centre (CPC) in Bengaluru is empowered to condone delays related to the verification of ITRs.
- 5-Year Limit: No condonation will be granted for claims filed more than five years after the relevant assessment year. This rule applies to applications filed from October 1, 2024, onwards.
- Timely Disposal: Applications should ideally be resolved within six months of receipt.
- Special Provisions for Court Orders and Supplementary Claims: The circular provides detailed guidelines on handling supplementary refund claims and those delayed due to court orders
These circular aims to streamline the process and provide clarity for taxpayers and authorities dealing with delay-related claims.
[Circular No. 11/2024 dated 01-10-204]
