Many taxpayers are waiting for their income tax refunds for the income tax return (ITR) filed for the financial year 2023-24 (assessment year 2024-25). However, can someone request an income tax refund from the Income Tax Department for any excess tax paid in the previous year?
Understanding income tax refunds
According to Section 139 (5) of the Income Tax Act, 1961 (‘IT Act’), a revised return of income can be filed on or before December 31 of the relevant assessment year. However, if the due date to file a revised return has expired, the provisions of the IT Act do not provide any other mechanism to enable the taxpayers to file a return of income beyond the prescribed timelines to claim any refunds,” said SR Patnaik, Partner (Head – Taxation), Cyril Amarchand Mangaldas.
Section 119 (2)(b) of the IT Act enabled the Central Board of Direct Taxes (CBDT) to authorise an income tax authority to admit the application filed by the taxpayer for a refund in order to avoid genuine hardships, he said.
Conditions for condonation of delay
“Circular 09/2015 dated June 09, 2015 was issued by the CBDT, wherein the jurisdictional Principal Commissioner of Income Tax is empowered to accept/reject the application of refund in respect of cases where the claim amount is less than Rs 10 lakh. If the refund claim exceeds Rs 10 lakh but less than Rs 50 lakh, then the application shall be filed before the Principal Chief Commissioner of Income Tax and if the refund claim exceeds Rs 50 lakh, then the application can be considered by the CBDT only. As per the circular, the application for claim of refund shall not be entertained beyond six years from the end of the relevant assessment year. The circular further specifies that the condonation application should be disposed of within six months from the end of the month in which the application was submitted,” said SR Patnaik, Partner (Head – Taxation), Cyril Amarchand Mangaldas.
Time limit to file condonation request
“The taxpayer needs to show that he had a reasonable cause such as unavoidable circumstances. The CBDT will review and pass appropriate orders. A taxpayer can file such an application within six years from the date of assessment year for which refund is being sought for. The taxpayer will need to enclose his medical certificates and other relevant documents to justify the delay. In the event, if the application is dismissed, the taxpayer can always challenge the order before the respective High Court,” said Alay Razvi, Partner, Accord Juris.
The condonation application should be disposed of within six months from the end of the month in which the application was submitted.
Steps to claim a refund for previous years
If you believe you are eligible for an income tax refund for previous years, follow these steps:
Visit the official income tax e-filing portal.
Choose the assessment year for which you wish to file your return.
Provide all required details accurately in your ITR form.
After submission, your ITR will be processed by an assessing officer who will verify your claims before issuing any refunds.
First Published: Sep 23 2024 | 5:16 PM IST
