The Central Board of Direct Taxes (CBDT) gave relief to taxpayers by issuing circular No. 17/2024 on November 17, 2024. As per the circular, taxpayers are allowed the condonation of delays in submitting Form 10-IC and Form 10-ID for the assessment years 2020-21, 2021-22, and 2022-23.
This step is taken to ease the burdens faced by assessees who are seeking to benefit from concessional tax rates under sections 115BAA and 115BAB of the Income Tax Act, of 1961.
Main Points of IT Circular No. 17/2024
Delegation of Powers
- Principal Commissioners (Pr.CIT) and Commissioners of Income Tax (CIT) can now process applications for condonation of delays up to 365 days.
- For delays exceeding 365 days, Principal Chief Commissioners (Pr.CCIT), Chief Commissioners of Income Tax (CCIT), and Directors General of Income Tax (DGIT) are authorized to handle these applications.
Who is Eligible for Condonation?
Applicants must meet the below conditions to be eligible for condonation of delays:
- The income tax return for the concerned assessment year must have been filed by the due date as per Section 139(1).
- The assessee must have applied for concessional tax rates following Section 115BAA (Form 10-IC) or Section 115BAB (Form 10-ID) in their ITR-6.
- They must have genuine reasons for the challenges they face.
Time Limitations for Applications
- Applications for condonation will not be accepted after three years from the end of the relevant assessment year.
- This three-year limit will also apply to applications submitted on or after the issuance of this circular.
Disposal On Time
The CBDT encourages tax authorities to resolve condonation applications within six months from the end of the month in which they are received.
Applications Still Being Processed
This circular is applicable to all condonation applications that are currently pending with tax authorities.
