What happens if a taxpayer forgets to file ITR but wants a refund later?

@ Ayush

One can file belated ITR till 31st March of the Assessment Year following the Assessment year in which the ITR filing was due.

With penalty.

And refund could be claimed in the belated ITR.

For more delayed cases, I am not aware of any rules, except CBDT keeps on giving opportunities time to time - gives circulars. 

So daily spend five minutes checking CBDT circulars and you may strike silver if not gold.

You can file condonation of delay application to your AO and if AO pass order then you can file your ITR and claim refund.

ca.ajaakarshjain16 @ gmail.com

If he has paid his tax liability then you wait upto the end of the relevant assessment year.

@ Ayush

Now online Condonation Request facility available for AY2024-25, as per I-T Portal.

And ITR-1, ITR-2 forms  available for AY24-25, AY23-24 and AY22-23.

So go ahead and do your belated returns for claiming refunds.

Refunds are only processed if the ITR is filed within the due date.

But, in special cases,

Taxpayers who have missed filing ITR for past years but are eligible for refunds should seek approval from the AO to get condonation and then can claim their refunds by filing ITR.

@ Ayush

Very very valid input by @ Shivani.

Unfortunately, there is a word in dictionary called "Overheads"

Please calculate first, whether your expected REFUND is MUCH more than the OVERHEADS for getting a Late Filing Condonation approved. 

I had read a news item, where someone spent more than 1 lakh on OVERHEADS to finally land a refund of 1 Rupee, which is not paid actually as per the Rules!!!

Missing the ITR due date does not mean the refund is lost. Here is what you can do.

OPTION 1: File a belated return under Section 139(4) ,  you can do this up to 31 December 2026. A late fee under Section 234F applies: Rs 1,000 if total income is below Rs 5 lakh, and Rs 5,000 if above. Interest at 1% per month also applies on any unpaid tax from 1 August onward. Your refund (TDS credit) can still be claimed.

OPTION 2: If the deadline of December 31, 2026 is also missed, you can apply to the Assessing Officer for condonation of delay under Section 119(2)(b). The AO can approve filing despite the delay, though the process takes months and is recommended only for significant refund amounts.

Key point on losses: A belated return cannot carry forward capital losses or business losses. If you have losses to set off against future income, that benefit is lost for AY 2026-27. Only unabsorbed depreciation can still be carried forward.

For TDS refunds: the TDS already deducted reflects in your AIS and 26AS. File the belated return before December 31, 2026 and the refund processing proceeds normally.

Once the belated-return window has lapsed, a refund for an earlier year can be claimed only after condonation of delay under Sec 119(2)(b) as per CBDT Circular 11/2024 (application within five years from the end of the relevant AY), because an updated return under Sec 139(8A) cannot be filed to claim or increase a refund.

For an Indian income-tax refund relating to an earlier year, first check the return and refund status on the e-filing portal and confirm the bank account is pre-validated. If the return was filed but the refund was not issued, address any portal defect or outstanding demand shown there. If the return was never filed, a refund claim for a past year may require a condonation request under section 119(2)(b); approval is discretionary and subject to conditions, so it is not an automatic route. The applicable procedure and time limits depend on the assessment year and the reason the refund was not claimed.

Refund follow-up is part of year-end compliance and client-record management. Manual tracking across years and portal statuses is difficult, while automation can reduce repetitive work and leave decisions to professional judgment. At Jir AI we provide 2,000+ AI agents and 650+ integrations to streamline your practice’s day-to-day workload. For a more efficient refund workflow, connect with us on WhatsApp: https://wa.me/message/3HVOZ7HIY4ESC1