Have you missed to file returns of earlier years and claim refunds or carry forward loss?

If yes, then there is a way to claim the refund or carry forward loss and set-off thereof of earlier previous year(s) (PY) of which the income tax return(s) were not filed from your end subject to certain conditions.

What is the way/ procedure to claim the refunds?

In exercise of the powers u/s 119(2)(b) of the Income-tax Act, 1961 (“the Act”), the Central Board of Direct Taxes (CBDT) issued Circular No. 9/2015 (“the Circular”) dated June 9, 2015 under which an assessee can apply to the appropriate authority for the condonation of delay in filing the returns to claim the following reliefs in case of genuine reasons for the delay:

  1. Claiming of refund(s) for any relevant Assessment Year (AY); and
  2. Claiming of carry forward of loss and set-off thereof for any relevant AY.

Who can grant such condonation?

Vide this Circular CBDT has empowered following authorities on the basis of limit of claims made by the assessee by application addressed to these authorities:

S. No. Limit of claims made by the Assessee (Rs.) Authorities to which have been empowered or to whom application to be made
1 <= 10 lakhs Principal Commissioners of Income-tax/ Commissioners of Income-tax (Pr.CsIT/ CsIT)
2 > 10 lakhs but <= 50 lakhs Principal Chief Commissioners of Income-tax/ Chief Commissioners of Income-tax (Pr.CCsIT/ CCsIT)
3 > 50 lakhs CBDT itself

On what basis/ conditions this condonation can be granted?

The basic conditions to grant the condonation are as follows subject to any direction(s) by the appropriate authority to the jurisdictional officer to make necessary inquiry or scrutiny:

1. The income/ loss declared and/ or refund claimed is correct and genuine; and

2. The case is of genuine hardship on merits i.e. the delay in filing was due to reasonable cause.

However, in case of supplementary claim of refund (claim of additional amount after completion of assessment for the year) following are the additional conditions along with as stated above:

1. Income of the assessee not assessable in hands of any other person,

2. No interest will be admissible on belated claim of refunds ; and

3. Refund has arisen due to excess TDS/ TCS/ Advance Tax payment/ Self-assessment Tax as per the provisions of the Act.

What is the time limit to claim such relief(s)?

The relief(s) can be claimed only within 6 years from the end of the relevant AY for which application/ claim has been made. So, if we read it as the other way round we can claim such relief for last 6 AYs. For example, if we are applying for such relief(s) in April 2018, then we can apply for the AY 2012-13 and later AYs.

To whom such application be sent/ submitted?

The said application can be submitted to the respective appropriate authorities. Alternatively, an assessee can submit the application in the Aaykar Seva Kendra (ASK) which seems to be much convenient procedure.

Disclaimer: All the information, contents, opinions and resources whatsoever provided in this article cannot be construed as tendering of professional legal advice, source of advertising or solicitation or invitation.

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9 Comments

  1. Soni says:

    Hello sir,

    I had filed original return within the due date for Ay 19-20 & paid self assessment tax. Recently I have identified error in my income computation for AY19-20, which if corrected gives me a calculated refund. Since due date to revise return has already lapsed, please can you advice if I can use provisions of Sec119(2)(b). If yes, please can you share the exact steps & a draft letter format for requesting condonation of delay? Do we need to attach any supporting with this letter for condonation of delay.

    Regards,
    Soni

  2. S K Sarda says:

    Sir,

    Please advise on the following point:

    If I am subject to income tax exemption and by mistake/oversight,I had filed return and paid Income taxes-

    How to claim refund of my income tax paid.

    Regards

    sksarda

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