An Assessee Can only file return for last 2 years and claim refund if any due and not beyond that. In case he missed to file return within prescribed timeline he has no choice other than to forget his refund claim.
Income Tax Department in Latest circular No 9/ 2015 has guided on how an assessee who has failed to file return and claim Refund according to section 119(2) (B) can now make an application and get Refund due up to last 6 Assessment years.
STEP ONE: FILE AN APPLICATION
In case the amount is less than Rs 10 Lacs for any one assessment year, The Application shall be made to the CIT.CIT will review the application & communicate with reason acceptance/rejection of such applications/claims.
In case the amount is more than Rs 10 Lacs the Application to be made to Chief Commissioner of Income Tax.
In case the amount is more than Rs 50 Lacs then to CBDT.
STEP TWO: MAY FILE UPTO 6 YEARS
Condonation Application can be filed up to six previous years. Even Loss can be Claimed for Carry forward.
The officer will be ensured that the income/loss declared and /or refund claimed is correct and genuine and also that the case is of genuine hardship on merits.
STEP THREE: CLEARENCE FROM AUTHORTIES
The power of accepting or rejecting the Condonation Application of Delay shall be subject to following Condition that:
The Income of Assessee is not assessable in the hands of other person under any provision of Income Tax Act.
Further No Interest will be admissible on belated claim of Refunds and The Refund has arisen due to excess payment of Advance Tax or Self-Assessment Tax or due to excess deduction of TDS.
STEP FOUR: SUPPLEMENTARY CLAIMS
A belated application for supplementary claim of refund (claim of additional amount of refund after completion of assessment for the same year) can be admitted for condonation provided other conditions as referred above are fulfilled. Assessee will not receive interest on belated claim of refunds.
STEP FIVE: CUMULATIVE ITEREST BEYOND SIX YEARS
In the case of 8% Savings (Taxable) Bonds, 2003 issued by Government of India opting for scheme of cumulative interest on maturity but has accounted interest earned on mercantile basis and the intermediary bank at the time of maturity has deducted tax at source on the entire amount of interest paid without apportioning the accrued interest/TDS, over various financial years involved, the time limit of six years for making such refund claims will not be applicable
Point to be noted:
1. The application will be accepted on genuine cases of hardships on merit.
2. Even losses can be carried forward.
3. No interest will be admissible on belated claim of refunds.
4. Supplementary claims can be filed for additional amount of refund after completion of assessment for same financial year.
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