Income Tax Refund Deadline Shortened to Five Years

Refund claim time limit has been reduced from 6 to 5 years under Section 119(2)(b). 

All earlier circulars allowing delayed claims are canceled. 

Taxpayers must file accurately and on time, ensuring efficient processing.

Replies (1)

The refund claim time limit under Section 119(2)(b) has indeed been reduced from 6 to 5 years, effective October 1, 2024.¹ ² This change means taxpayers must file their refund claims within 5 years from the end of the relevant assessment year. *Key Implications:* - _Cancellation of earlier circulars_: All previous circulars allowing delayed claims are no longer valid. - _Accurate and timely filing_: Taxpayers must ensure accurate and timely filing to avoid delays and penalties. - _Efficient processing_: The reduced time limit aims to facilitate efficient processing of refund claims. *Filing Condonation Requests:* Taxpayers can still file condonation requests under Section 119(2)(b) if they miss the deadline. However, these requests will be subject to scrutiny, and taxpayers must provide genuine reasons for the delay.³ Remember to consult the official income tax website or seek professional advice to ensure compliance with the revised regulations.

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