CA Varun Gupta
Quick Summary
Introduction The Income Tax Act, 1961, provides different mechanisms for taxpayers to address missed deadlines for filing Income Tax Returns (ITR). Two key provisions in this regard are: ITR-U (Section 139(8A)) - Allows taxpayers to update their returns by paying additional tax. Condonation of
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FAQ :
ITR-U (Section 139(8A)) allows taxpayers to update their filed income tax returns by paying an additional tax, ranging from 25% to 70% depending on the delay period.
Condonation of Delay (Section 119(2)(b)) provides relief for taxpayers facing genuine hardships that prevented them from filing their Income Tax Return on time, without requiring additional tax payments.
Condonation of Delay is often more beneficial because it does not require paying additional tax, allows for the carry-forward of losses, and permits the claiming of refunds, which are not possible with ITR-U.
No, ITR-U cannot be used to claim refunds. If you are eligible for a refund, you would need to consider Condonation of Delay if you meet the criteria for genuine hardship.
Valid reasons for delay accepted under Condonation of Delay include genuine hardships such as medical emergencies, technical failures, or natural calamities.
A decision on a Condonation of Delay application must be made within six months, as per CBDT Circular No. 11/2024.
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