CBDT rules for delay: New Deadline for Delay in Income Tax Filings
CBDT rules for delay: The Central Government has reduced the deadline for ‘Condonation of Delay’ application for late filing of Income Tax Returns (ITR) by one year. After this change, now taxpayers will get only five years for ‘Condonation of Delay’, whereas earlier this deadline was six years. This new guideline has been issued by the Central Board of Direct Taxes (CBDT), which has come into effect from October 1, 2024.
CBDT rules for delay: What is ‘Condonation of Delay’?
‘Condonation of Delay’ application is considered an important process for taxpayers. Under this process, taxpayers claim income tax refund not received in previous years or adjust the loss incurred in earlier years in the next years. This application is made when the last date for filing income tax return has expired a long time ago.
CBDT rules for delay: Change in application deadline
Sandeep Bhalla, Partner, Dhruva Advisors told ET Bureau, “As per the new circular, if the application is made before October 1, 2024, the old deadline (6 years) will apply. However, only 5-year deadline will apply to applications made after October 1, 2024.”
CBDT rules for delay: What will be the impact on delay in filing income tax returns?
This change makes it clear that taxpayers who delay filing income tax returns will now get less time to adjust their old refunds or losses. This may reduce the opportunity for taxpayers to improve their financial position and resolve old tax obligations.
CBDT rules for delay: Income Tax Refund and Condonation of Delay Application Status
Sudhir Kaushik, CEO, Taxspanner.com says, “But, this time limit will not apply to cases where income tax refund is based on court orders. In such cases, the application can be filed only within 6 months, which will be counted from the end of the month in which the court order is issued.”
CBDT rules for delay: How to Apply
To apply online for ‘Condonation of Delay’ on the Income Tax portal, first login to your account. Then click on the ‘Services’ tab and select ‘Condonation Request’. After that, fill in the required information such as reason, assessment year, ITR file, claim value etc., and click on ‘Submit’. Don’t forget to verify the application in the last step.
