‘Condonation of Delay’ application is considered an important process for taxpayers. Under this process, taxpayers claim old income tax refund or set off losses incurred in past years in the coming years.
New Delhi: The central government has reduced the timeline for condonation application for late filing of income tax returns by one year. In such a situation, now taxpayers will get only five years to file ‘Condonation of Delay’ for the delay in (ITR). Let us tell you that this timeline was earlier 6 years. In fact, the Central Board of Direct Taxes (CBDT) has recently issued this new guideline, which has come into effect from October 1, 2024.
What is ‘Condonation of Delay’?
Actually, ‘Condonation of Delay’ application is considered an important process for taxpayers. Under this process, taxpayers claim old income tax refund or set-off the losses incurred in the past years in the coming years. This application is made when the last date for filing ITR has expired long ago.
Sandeep Bhalla, partner, Dhruva Advisors, told ET Bureau, “According to the new circular, if an application is made before October 1, 2024, then the old time limit (6 years) will be followed. But, only the timeline of 5 years will be applicable on the application made after October 1, 2024.”
Income Tax Refund and Condonation of Delay Application Status
According to Sudhir Kaushik, CEO, Taxspanner.com, “However, this time limit will not apply in cases of income tax refund on court orders. In these cases, the application has to be made only within 6 months, which will be from the end of the month in which the order is issued by the court.”
How to apply
To apply for ‘Condonation of Delay’ online on the Income Tax portal, first login to your account. Then click on the ‘Services’ tab and select ‘Condonation Request’. After this, fill in the required information to apply like reason, assessment year, ITR file, claim value etc. and click ‘Submit’. Also pay attention to the last step to verify the application.
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