CBDT Issues Circular on Condonation of Delay for ITR Refunds and Loss Carry Forward Claims

CBDT Issues New Guidelines for Delayed ITR Filings: Circular No. 11/2024

On October 1, 2024, the Central Board of Direct Taxes (CBDT) released Circular No. 11/2024, introducing updated guidelines for condoning delays in filing Income Tax Returns (ITRs) claiming refunds or carrying forward losses under Section 119(2)(b) of the Income-tax Act, 1961. This new circular supersedes all previous instructions and implements a structured approach based on monetary thresholds to address delay-related claims.

Key Highlights of CBDT Circular No. 11/2024

1. Monetary Limits for Income Tax Authorities:

• Principal Commissioners (Pr. CsIT/CsIT): Authorized to handle delay claims for ITR filings up to ₹1 crore.
• Chief Commissioners (CCsIT): Empowered to manage claims between ₹1 crore and ₹3 crores.
• Principal Chief Commissioners (Pr. CCsIT): Will address claims exceeding ₹3 crores.

2. Condonation of Delay in ITR Verification:The Central Processing Centre (CPC) in Bengaluru is now responsible for processing applications regarding delays in verifying ITRs.
3. Five-Year Deadline for Delay Claims:Applications for condonation of delay will not be considered if filed more than five years after the relevant assessment year. This rule applies to all claims submitted on or after October 1, 2024.
4. Six-Month Application Disposal Timeframe:Authorities must resolve applications within six months of receipt.
5. Supplementary Claims and Court-Ordered Delays:The circular includes specific provisions for handling supplementary refund claims and claims delayed by court orders.
6. Board Oversight of Grievances:The Board retains the right to review any grievances related to the application of these guidelines, ensuring fairness and transparency in the process.

This circular offers a clear, streamlined process for taxpayers seeking condonation for delayed ITR filings, refunds, or loss carry-forward approvals, ensuring efficient handling by relevant authorities.

For more details, refer to the official notification: Circular No. 11/2024-Income Tax, Dated October 1, 2024.