On October 1, 2024, the Central Board of Direct Taxes (CBDT) issued Circular No. 11/2024 establishing new 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. The very circular replaces all the prior instructions and prompts a structured approach to handle the claims of delay as per the financial limit.
Main Points of The Circular
The main points regarding this circular you can see below:
Monetary Limitations for Officers
- Principal Chief Commissioners of Income Tax (Pr. CCsIT) will manage claims exceeding ₹3 crores
- Chief Commissioners of Income Tax (CCsIT) can address claims between ₹1 crore and ₹3 crores
- Principal Commissioners of Income Tax (Pr. CsIT/CsIT) are empowered to handle claims of delay in filing ITR up to ₹1 crore
Additional Claims and Court Order Delays
The circular establishes particular requirements for handling supplementary refund requests and claims that have been postponed because of court orders.
Condonation of Uncertainty in ITR Verification
For condonation of delay in verifying income tax return (ITR), the Central Processing Centre (CPC) in Bengaluru is now authorized to process applications.
Six-Month Time Period
Authorities must process applications within six months from the date they are received.
5-Year Deadline to Claim
Applications submitted more than five years after the end of the relevant assessment year will not be accepted. This regulation is relevant to all applications submitted beginning October 1, 2024.
The Board retains the authority to assess grievances related to the application of these guidelines, guaranteeing that the process is clear and effective for taxpayers pursuing delayed ITR refunds or approvals for loss carryforwards.
This circular indicates a crucial move toward clarifying the rules regarding delay approvals, creating a smoother process for taxpayers and governing bodies.
