CBDT issues new guidelines on income tax refunds. Taxpayers should know the following points

In order to receive a refund or claim losses, taxpayers must submit a condonation application within five years of the end date of the assessment period. This rule is applicable to all applications filed after October 1, 2020.

Recently, the Central Board of Direct Taxes, under the Department of Revenue of the Ministry of Finance has released updated regulations that outline the process of granting a condonation for delays in the submission of income tax returns. These new directives override all previous guidelines and instructions.

The top points are:

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1. As follows, the authority to approve or reject claims based on amount is allocated:

The Principal Commissioners of Income Tax will decide on claims up to Rs. CsIT)> Claims between Rs 1 crore to Rs 3 crore fall under the jurisdiction of the Chief Commissioners.

The Principal Chief Commissioners will handle claims exceeding Rs. CCsIT).

The Central Processing Centre in Bengaluru (CPC) can also process requests for the verification of ITR V forms that are late.

2. There are time limits for submitting condonation requests:

The taxpayer must submit a condonation application within five years of the end of the tax year to claim a refund or loss. This regulation applies to all applications received after October 1, 2024. The authorities must process these requests within six months.

3. Approval Criteria

To be approved, a taxpayer must provide a valid reason for the delay. They also need to prove that there were difficulties meeting the deadline. The authorities can assign a local officer to investigate the case if necessary.

4. Special Cases

The five-year period for claiming a refund does not include time spent by the court in deciding the case.

Six months are given to taxpayers from the date the court order was issued before they can request a condonation.

These guidelines may apply to additional refund claims (also known as supplementary claims).

5. Refund claims received after the deadline

Taxpayers who file for late refunds are reminded that no interest will be charged.