Income Tax Department Orders Refund of Old Income Tax by January 31, 2024

Key Takeaways:

1. Individuals who filed ITRs for AY 2018-19, 2019-20, and 2020-21 and have not received their income tax refunds will now receive them by January 31, 2024.

2. The income tax department will process ITRs within nine months from the expiry of the financial year in which the ITR was filed, as per the revised rule effective from April 1, 2021.

3. Only ITRs filed under specific sections and having a tax refund due will be processed by January 31, 2024, under section 143(1) (of Income Tax Act, 1961).

4. ITRs selected for scrutiny assessment, unprocessed for reasons attributable to the assessee, or showing additional tax payable or likely to have a tax demand after processing will not be eligible for this relief.

The income tax department has passed an order stating that individuals who had filed Income Tax Returns (ITRs) for Assessment Years (AY) 2018-19, 2019-20, and 2020-21 and have not yet received their income tax refunds will now receive them by January 31, 2024. This order was issued on December 1, 2023, and it applies to ITRs that were filed validly under section 139 (of Income Tax Act, 1961) or 142(1) (of Income Tax Act, 1961) or 119 (of Income Tax Act, 1961), but could not be processed under sub-section (1) of section 143 (of Income Tax Act, 1961) due to technical issues or other reasons not attributable to the assessees concerned.

Here are the key points from the order:

1. The income tax department will process the ITRs of individuals who have not received tax refunds for FYs 2017-18, 2018-19, and 2019-20 by January 31, 2024.

2. The time limit for processing ITRs by the income tax department is within nine months from the expiry of the financial year in which the ITR was filed. This rule was revised with effect from April 1, 2021. Previously, the income tax department had one year from the end of the financial year in which the ITR was filed to process it.

3. Only those ITRs filed under section 139 (of Income Tax Act, 1961) or 142(1) or 119 and having a tax refund due will be processed by January 31, 2024, under section 143(1) (of Income Tax Act, 1961). This includes belated ITRs filed for specified financial years.

4. ITRs selected for scrutiny assessment, unprocessed for reasons attributable to the assessee, or showing additional tax payable or likely to have a tax demand after processing will not be eligible for this relief.

The order also mentions that before the income tax refund is credited to the bank account, an intimation notice under section 143(1) (of Income Tax Act, 1961) will be sent to the registered email ID of the taxpayer.

It’s important to note that the order provides relief for individuals who have faced delays in receiving their income tax refunds due to the non-processing of their ITRs. However, it does not apply to cases where there is a tax demand at the time of ITR filing or after the processing of the ITR.

FAQ

Q1: What is the deadline for processing the ITRs and issuing the refunds?

A1: The deadline set by the income tax department for processing the ITRs and issuing the refunds is January 31, 2024.

Q2: Which ITRs are eligible for processing under this order?

A2: Only ITRs filed under specific sections and having a tax refund due will be processed by January 31, 2024, under section 143(1) (of Income Tax Act, 1961).

Q3: Are there any cases not eligible for this relief?

A3: ITRs selected for scrutiny assessment, unprocessed for reasons attributable to the assessee, or showing additional tax payable or likely to have a tax demand after processing will not be eligible for this relief.