Introduction: The Central Board of Direct Taxes (CBDT), a department under the Ministry of Finance, Government of India, has extended the deadline for processing refund claims under section 143(1) of the Income-tax Act, 1961. This extension aims to address the grievances of taxpayers who have faced delays in receiving their income tax refunds. In this article, we will provide an in-depth analysis of this development and its implications for taxpayers.
Background and Previous Orders: The CBDT had previously issued orders under Section 119 of the Income-tax Act to address the processing of refund claims. These orders, dated 05.07.2021 and 30.09.2021, focused on relaxing the timeframe prescribed in the second proviso to sub-section (1) of Section 143 of the Income-tax Act. The intent was to ensure that validly filed returns with refund claims up to Assessment Year 2017-18 could be processed. These returns, which could not be processed under sub-section (1) of Section 143 and had become time-barred, were given a deadline of 30.11.2021 for processing, subject to specified conditions and exceptions.
Extension of the Deadline: Given the persistent grievances of taxpayers regarding delayed refunds, the CBDT has decided to re-evaluate the situation. To mitigate the genuine hardships faced by taxpayers, the CBDT, empowered under section 119 of the Income-tax Act, has partially modified its earlier orders under section 119. In particular, the timeframe mentioned in paragraph no. 2 of the order dated 30.09.2021 has been extended until 31.01.2024. This extension specifically applies to returns of income that have been validly filed electronically.
Unchanged Provisions: It’s important to note that while the deadline for processing refund claims has been extended, all other provisions and conditions specified in the CBDT’s earlier order dated 05.07.2021 remain unchanged.
Conclusion: The extension of the deadline for processing refund claims under section 143(1) of the Income-tax Act offers significant relief to taxpayers who have been waiting for their income tax refunds. This measure is designed to alleviate genuine hardships and ensure that taxpayers receive their refunds in a more timely manner. Taxpayers should be aware of this extension and take advantage of this opportunity. For further information and updates, individuals are advised to visit the official website of the Income Tax Department.
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F. No.225/132/2023/ITA-II
Government of India
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes
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North Block, the 16th October, 2023
Order under section 119 of the Income-tax Act, 1961
Subject: Processing of returns with refund claims under section 143(1) of the Income-tax Act, 1961 beyond the prescribed time limits in non-scrutiny cases-regd.
Central Board of Direct Taxes (Board) vide its order under section 119 of the Income-tax Act, 1961 (Act) dated 05.07.2021 and 30.09.2021 on the captioned subject relaxed the timeframe prescribed in second proviso to sub-section (1) of Section 143 of the Act. It was directed that all validly filed returns up to Assessment Year 2017-18 with refund claims, which could not be processed under sub-section (1) of the Section 143 of the Act and which had become time-barred, should be processed by 30.11.2021, subject to the conditions/ exceptions specified therein.
2. The matter has been re-considered by Board in view of pending taxpayer grievances related to issue of refund. To mitigate the genuine hardship being faced by the taxpayers on this issue, Board, by virtue of its power under section 119 of the Act and in partial modification of its earlier order under section 119 of the Act dated 05.07.2021 and 30.09.2021, supra, hereby further extends the time frame mentioned in the para no. 2 of the order dated 30.09.2021 till 31.01.2024 in respect of returns of income validly filed electronically. All other contents of the said order u/s 119 of the Act dated 05.07.2021 will remain unchanged.
3. This may be brought to the notice of all for necessary compliance.
(Dr. Castro Jayaprakash.T)
Under Secretary, (ITA-II), CBDT
Copy for information to:
i. Chairman (CBDT) and all Members of CBDT
ii. All Pr. CCsIT/DsGIT
iii. DGIT(Systems), Delhi
iv. DGIT(Systems), Bengaluru with request for further necessary action in the matter
v. ADG(Systems)-4 with request for uploading on department’s official website
vi. JCIT, Database Cell for uploading on IRS Officers website
vii. Guard file
(Dr. Castro Jayaprakash.T)
Under Secretary, (ITA-II), CBDT
