CBDT circular on Condonation of Delay for Income Tax Refund and Carry forward of Loss

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 [Condonation of Delay].

Limit for Condonation of Delay:

Claims up to Rs. 1 crore for any one assessment year

The Principal Commissioners of Income-tax/Commissioners of Income-tax (Pr. CsIT/CsIT) 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.

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.

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.

Further the Circular Said, it is also provided 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 Act seeking condonation of delay in veri tying 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

i. The income of the assessee is not assessable in the hands of any other person under any of the provisions of the Act.

ii. No interest will be admissible on belated claim of refunds.

iii . 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.