New Delhi: The Central Council of Direct Taxes (CBDT) ordered the processing of late tax returns and their compensation in cases where taxpayers submitted an application for a delay and reported their income by the end of March 2024.
CBDT stated in the order that the return on income filed under Section 119 of the Income Tax Act, according to which the delay is convicted, could not be processed in the statutory deadline for the technical reason and therefore not returned.
The Tax Office stated that the complaints were lodged regarding the non -recruiting money due to the non -processing of these revenues in some cases.
The tax policy production body said it has now decided to release the time frame for processing these revenues. The intimation of these revenue processing will be sent to the evaluators by the end of March 2026.
Real suffering
Experts stated that in some cases taxpayers are not able to file their tax return on income in the specified due dates. As a result, these taxpayers are unable to request a refund, or they are denied the possibility of transferring the losses, Deelesh Chhed, Partner, Dhruva Advisors, Tax and Regulatory Service.
CBDT, in 2015, allowed taxpayers who face real hardships, request the release of the delay in filing the return and where the taxpayer is granted, could file a tax return and request a return or make losses, subject to riders. Such a relief is limited to cases involving real problems and is not generally available to all taxpayers, CHHEDA explained.
However, as a result of technical questions, several such revenues administered on the basis of condonation were not processed within the statutory timeline and no intimation has been issued. As a result, these taxpayers were not awarded a refund, which led to the representation of affected taxpayers, Chheda added.
Time limit released
“The Board of Directors has now released the deadline for processing valid returns and orders such a return if the time limit for issuing intimation has expired.
This step comes after the Finance Minister Nirmala Sitharaman at the beginning of the week reviewed the performance of income tax, including the pace of compensation and complaint solutions.
Sitharaman also ordered officials to monitor the liquidation of complaints on their online platforms, identified recurring problems, and strengthen the mechanisms of compensation accordingly, Mint reported June 23.
The latest CBDT circular is a welcome relief for taxpayers whose delayed returns have been adopted according to cohesion provisions, but remained unprocessed due to time restrictions, said AMIT Maleshwari, tax partner of AKM Global, tax and consulting firm. “This step brings much necessary closure and certainty, especially for those who have previously been left in a state of uncertainty, despite the submission of valid revenues,” Maheshware said.
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