Setback For Taxpayers: You Can't Claim Tax Refund For These Periods As New Rule Kicks In

The Central Board of Direct Taxes (CBDT) has issued a new circular regarding the condonation of delay in filing Income Tax Returns (ITR). 

Taxpayers file condonation of delay requests to claim income tax refunds or carry forward and set off past losses. 

This application allows taxpayers to file overdue ITRs to claim old refunds or adjust losses from previous years.

The circular has reduced the time limit to apply for condonation of delay to five years from the end of the financial year when the ITR was initially due.

The earlier 2015 circular allowed taxpayers to file the condonation delay application within six years from the end of the financial year in which the ITR was required to be filed. 

The circular mandates that delay condonation applications should, as far as possible, be resolved within six months of their receipt. 

This important update was announced by CBDT on October 1, 2024, impacting taxpayers and their claims. (Image Credit: Freepik)