CBDT Extends Time Limit for Processing ITR Refunds

Case Name:

Extension of Time Limit for Processing ITR Refunds by CBDT

Key Takeaways:

1. CBDT has extended the time limit to process ITRs with refund claims for AYs 2018-19 to 2020-21 until January 31, 2024.
2. This extension is aimed at addressing pending taxpayer grievances related to the issue of refunds.
3. Returns of income validly filed electronically with refund claims for the mentioned AYs can now be processed with prior administrative approval of Principal Chief Commissioner of Income Tax (Pr.CCIT)/Chief Commissioner of Income Tax (CCIT) concerned.
4. The intimation of such processing under sub-section section 143 (of Income Tax Act, 1961) can be sent to the assessee concerned, and all subsequent effects under the Act, including the issue of refund, shall also follow as per the prescribed procedures.
5. The progress of disposal of such cases shall be monitored by the Pr.CIT/CIT concerned.

Synopsis:

The Central Board of Direct Taxes (CBDT) has extended the time limit to process Income Tax Returns (ITRs) with refund claims for Assessment Years (AYs) 2018-19 to 2020-21 until January 31, 2024. This extension is aimed at addressing pending taxpayer grievances related to the issue of refunds.

The CBDT’s order acknowledges that due to technical issues or other reasons not attributable to the assessees, several returns for AYs 2018-19, 2019-20, and 2020-21, which were validly filed under section 139 (of Income Tax Act, 1961) or 142(1) (of Income Tax Act, 1961) or 119 (of Income Tax Act, 1961), could not be processed under sub-section (1) of section 143 (of Income Tax Act, 1961). As a result, intimation regarding the processing of such returns could not be sent within the prescribed timeframe.

To resolve the grievances of taxpayers in such situations, the CBDT has relaxed the time-frame prescribed in the second proviso to sub-section (1) of section 143 (of Income Tax Act, 1961) and directed that all returns of income validly filed electronically with refund claims for AYs 2018-19, 2019-20, and 2020-21, for which the date of sending intimation under sub-section (1) of section 143 (of Income Tax Act, 1961) has lapsed, can now be processed with prior administrative approval of Principal Chief Commissioner of Income Tax (Pr.CCIT)/Chief Commissioner of Income Tax (CCIT) concerned.

The intimation of such processing under sub-section section 143 (of Income Tax Act, 1961) can be sent to the assessee concerned, and all subsequent effects under the Act, including the issue of refund, shall also follow as per the prescribed procedures.

To ensure adequate safeguards, once administrative approval is accorded by the Pr.CCIT/CCIT, the Pr.CIT/CIT concerned would make a reference to the Director General of Income Tax (Systems) to provide necessary enablement to the Assessing Officer on a case-to-case basis. The progress of disposal of such cases shall be monitored by the Pr.CIT/CIT concerned.

This extension is a measure to mitigate genuine hardship faced by taxpayers in obtaining their legitimate refunds in accordance with the provisions of the Income Tax Act, 1961, especially when the delay may not be attributable to them.

FAQ:

Q1: What is the extended deadline for processing ITR refunds?

A1: The deadline has been extended until January 31, 2024, for Income Tax Returns (ITRs) with refund claims for Assessment Years (AYs) 2018-19 to 2020-21.

Q2: What is the purpose of this extension?

A2: The extension aims to address pending taxpayer grievances related to the issue of refunds, especially when the delay may not be attributable to the taxpayers.

Q3: What is the process for processing returns with refund claims under this extension?

A3: Returns of income validly filed electronically with refund claims for AYs 2018-19 to 2020-21 can now be processed with prior administrative approval of the Principal Chief Commissioner of Income Tax (Pr.CCIT)/Chief Commissioner of Income Tax (CCIT) concerned.