Section 139(1) talks about filing of income tax return and the due dates. All the assesse having income above the threshold limit has to file the income tax return. These includes salaried employees, self-employed businessman, owner of let out property, companies, charitable trust, association of person, body of individual, partnership firms and other artificial entities. Income tax return for the financial year has to be file before July 31 for the year ended 31st March for example March 2015 year end return should be file before July 31st 2015.
However the due date of filing of income tax return for assessee covered under section 44AB (tax audit cases) is September 30.
Section 139(4) Belated return says any person who has fails to file the income tax return as defined under section 139(1) or within the time allowed under a notice issued under sub-section (1) of section 142, may furnish the income tax return for any previous year at any time before the expiry of one year from the end of the relevant assessment year or before the completion of the assessment, whichever is earlier. In Simple words assessee can only file the income tax return for last 2 years and claim refund if any due and not beyond that. In case taxpayer fails to file the income tax return and he has refund to claim then at present there no other way to get it he has to let go his refund.
Now here is the good news to those who has forgot or missed filing their income tax return and claim income tax refund. The department of Income Tax in its latest circular # 9/2015 [F.NO.312/22/2015-OT], dated 9th June 2015, has issued comprehensive guidelines on how an assessee who has failed to file return and claim Refund and carry forward the losses according to section 119(2) (B) can now make an condonation application and get refund due up to past 6 assessment years.
FILE AN CONDONATION APPLICATION
Department of income tax has vested power to Principal Commissioner of Income Tax/ Commissioners of Income-tax/Chief Commissioners/Central Board of Direct Taxes for acceptance/rejection of such condonation application. Application can be submitted in following manner;
|Refund Claim||Application to|
|Claim amount is not more than Rs. 10 lakhs for any one assessment year||Principal Commissioner of Income Tax/ Commissioners of Income-tax|
|Claim amount is more than Rs 10 Lacs||Chief Commissioner of Income Tax|
|Claim amount is more than Rs 50 Lacs||Central Board of Direct Taxes|
On submission of application CIT will review the application & communicate with reason acceptance/rejection of such applications/claims.
PERIOD OF APPLICATION
Condonation Application can be file up to six previous years from the end of the assessment year for which such application made; even Loss can be claimed for carry forward.
Supplementary claim of refund (claim of additional amount of refund after completion of assessment for the same year) can be admitted for condonation provided all other conditions as referred in circular # 9/2015 are fulfilled. The powers of acceptance/rejection within the monetary limits as defined above are delegated to the Principal Commissioner of Income Tax/ Commissioners of Income-tax/Chief Commissioners/Central Board of Direct Taxes in case of returns claiming refund and supplementary claim of refund would be subject to the following further conditions:
|i.||The income of the assessee is not assessable in the hands of any other person under any of the provisions of the Act.|
|ii.||No interest will be admissible on belated claim of refunds.|
|iii.||The refund has arisen as a result of excess tax deducted/collected at source and/or excess advance tax payment and/or excess payment of self-assessment tax as per the provisions of the Act.|
The competent authority must ensure that the income/loss declared and /or refund claimed is correct and genuine and also that the case is of genuine hardship on merits. Further the competent authority shall forward the case to the jurisdictional assessing officer to make essential inquiries or examine the case in accordance with the provisions of the Act to determine the rightness of the claim.
DISPOSAL OF CONDONATION APPLICATION
As per circular # 9/2015, all accepted condonation applications should be disposed of within six months from the end of the month in which the application is received by the competent authority, as far as possible.
CUMULATIVE INTEREST BEYOND SIX YEARS
In case applicant who has invest in 8% Savings (Taxable) Bonds, 2003 issued by Government of India opting for scheme of cumulative interest on maturity but has accounted interest earned on mercantile basis and the intermediary bank at the time of maturity has deducted tax at source on the entire amount of interest paid without apportioning the accrued interest/TDS, over various financial years involved, the time limit of six years for making such refund claims will not be applicable in such cases.
Circular# 9/2015 will cover all such applications/claims for condonation of delay under section 119(2xb) which are pending as on the date of issue of the Circular.
In a case where refund claim has arisen resulting to a Court order, the period for which any such proceedings were pending before any Court of Law shall be ignored while calculating the said period of six years, provided such condonation application is filed within six months from the end of the month in which the Court order was issued or the end of financial year whichever is later.
The Central Board of Direct Taxes reserves all the power to examine any grievance arising out of an order passed or not passed by the Principal Commissioner of Income Tax/ Commissioners of Income-tax/Chief Commissioners and issue suitable directions to them for proper implementation of this Circular. However, no review of or appeal against the orders of such authorities would be entertained by the Board.