Starting October 2024, the Central Board of Direct Taxes (CBDT) introduced new guidelines to streamline the process for taxpayers seeking income tax refunds or carrying forward losses, especially in cases where they missed the original filing deadlines.
Key changes include
Authority Based on Claim Amount
- Refund claims up to ₹1 crore are managed by Principal Commissioners of Income Tax (Pr. CsIT).
- Claims between ₹1 crore and ₹3 crore fall under the Chief Commissioners (CCsIT).
- Claims over ₹3 crore are handled by Principal Chief Commissioners (Pr. CCsIT). Additionally, the Central Processing Centre (CPC) in Bengaluru will manage delayed return verifications.
Condonation Applications
Taxpayers have five years from the end of the relevant assessment year to file condonation requests for late claims. Applications must demonstrate a valid reason for the delay and show that it caused genuine hardship. Authorities aim to process these applications within six months.
Special Cases
In instances where court orders lead to refund claims, the time spent in court doesn't count towards the five-year limit. Taxpayers have an additional six months after the court ruling to submit their applications.
No Interest on Late Refunds
Taxpayers filing delayed refund claims will not be eligible to receive interest on the refunded amounts
These guidelines aim to provide greater clarity and efficiency in handling delayed refund claims while ensuring fairness in the process.
FAQs
When can I claim my income tax refund?
You can claim an income tax refund within 12 months after the end of the relevant assessment year. However, the following conditions will also apply to the tax refund claims: a) You can claim a tax refund on the income tax paid within six successive assessment years.
Why is the ITR refund delayed in 2024?.
Tax arrears: If you owe taxes, the department may adjust your refund to cover these dues. System errors: Technical issues in the department's systems or your bank can cause delays.
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