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Condonation of Delay in Filing ITR

Updated on: 16 Oct, 2024 01:13 PM

The income tax laws of India have fixed a deadline for filing your income tax return in India, which is generally the 31st of July of the relevant assessment year. If you miss this deadline, you can file a belated return by 31st December and claim your income tax refund. But what if you miss this deadline? If you miss this deadline, would you not be able to make various claims in their returns of income like a refund, carry forward of losses etc.

The Income Tax Department provides special relief for taxpayers who file or verify their Income Tax Returns (ITRs) after the deadline, referred to as the "pardon for delayed filing." To qualify for this benefit, taxpayers must submit their requests for a pardon through the e-filing portal. Upon receiving the request, income tax officials will review it and may grant approval, allowing the taxpayer an additional opportunity to file their ITR. This initiative aims to support taxpayers in meeting their obligations even after the deadline has passed.

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Latest Update

The Central Board of Direct Taxes (CBDT) has rolled out new regulations for granting condonation of delays in ITR submissions.

  • Submit your condonation applications within 5 years from the end of the assessment year.
  • Applications post October 1, 2024, will follow these new guidelines.

If you received a refund due to a court order, the five-year limit doesn’t apply to the time your case was in court. You have 6 months from the order date to request condonation.

What is Condonation of Delay in Filing ITR?

Condonation of delay in filing ITR is a special relief provided by the Income Tax Department to the taxpayers for late filing or verification of ITR. Every assessee or taxpayer must submit the Income Tax Return and Complete its verification by a specific date. The last date for filing ITR in India is 31st July. However, if the taxpayer fails to file the ITR within the specified time limit, he might face heavy penalties.

Condonation of delay in filing ITR is a special relief provided by the Income Tax Department to the taxpayers for late filing or verification of ITR. To avail of this benefit, the assessees must file a request for condonation of the delay in filing ITR over the e-filing portal. Then, if the income tax officers deem fit, they can accept the request and give the taxpayer a second chance to file the ITR.

What are the Prerequisites for Filing a Condonation Request?

Before you go ahead and file a request for condonation of delay in filing the ITR, you must have the following -

  • You must be registered with the e-filing portal and have a valid password and user Id and use it later to file the condonation request.
  • You must also have your PAN card linked to your bank account.
  • You must have a validated bank account and a demat account. It should also be enabled for e-verification.

What is the new limit for putting in condonation of delay requests

As per the circular, here are the limits of the amount of tax refund, carry forward of loss and set off:

  • Not more than Rs 1 crore: "The Principal Commissioners of Income-tax/Commissioners of Income-tax (Pr. CsIT/CsIT) shall be vested with the powers of acceptance/rejection of such applications/ claims if the amount of such claims is not more than Rs 1 crore for any one assessment year.
  • More than Rs 1 crore but less than Rs 3 crore: The Chief Commissioners of Income-tax (CCsIT) shall be vested with the powers of acceptance/rejection of such applications/claims if the amount of such claims exceeds Rs 1 crore but is not more than Rs 3 crore for any one assessment year.
  • Exceeds Rs 3 crore: The Principal chief commissioners of Income-tax (Pr. CCsIT) shall be vested with the power of acceptance/rejection of such applications/claims if the amount of such claims exceeds Rs 3 crores for any one assessment year.

Old vs new limit for condonation of delay

Old monetary limit for condonation of delay (May 31, 2023) Tax authority (old) New monetary limit for condonation of delay (October 1, 2024) Tax Authority (new)
Not more than Rs 50 lakh Principal/Commissioner of Income tax Not more than Rs 1 crore Principal/Commissioner of Income tax
Exceeds Rs 50 lakh but less than Rs 2 crore Chief commissioner of Income tax Exceeds Rs 1 crore but not more than Rs 3 crore Chief commissioner of Income tax
Exceeds Rs 2 crore but less than Rs 3 crore Principal Chief Commissioner of Income Tax Exceeds Rs 3 crore Principal Chief Commisisoner of Income tax
Exceeds Rs 3 crore Board

How to File a Condonation Request for Filing ITR after the Time Limit?

If you miss filing the ITR by the given date, the only way to save yourself from penalties is to file a request for condonation of delay. You should follow these steps to file the request -

  • Step 1. Visit the online filing portal of the IT Department
  • Step 2. Log in with your ID and password.
  • Step 3. Visit your ‘Dashboard’ and click on ‘Services’ at the top bar.
  • Step 4. Now, select the ‘condonation request’ from the drop-down menu.
  • Step 5. A condonation request page will appear. Select the option Delay in submission of ITR-V under Select the type of condonation request you want to proceed with and click ‘continue.’
  • Step 6. On the filing after time barred page, click on ‘create condonation request.’
    On the ‘enter details and create ITR page,’ enter the required details.
    • Select the request category
    • Assessment Year
    • ITR
    • Claim Value
    • Filing Type
    • Reason for delay in filing and ITR type
  • Step 7. Finally, press ‘Submit.’
  • Step 8. You receive a success message and a Transaction Id.

What are the Steps to Submit a Condonation Request for Delay in ITR Verification?

If you fail to e-verify your ITR after filing it within 30 days, you must submit a request for condonation of delay in verification of the ITR. Follow these steps you need to follow while filing a request for condonation of delay in verification of ITR -

  • Step 1. Navigate to the e-filing website.
  • Step 2. Log in with your Id and password.
  • Step 3. Visit the Dashboard, click on ‘services from the top bar, then click ‘condonation request’ from the drop-down menu.
  • Step 4. On the condonation request page, select ‘delay in submission of ITR-V,’ and press continue.
  • Step 5. On the next page, click ‘Create condonation request.’
  • Step 6. On the ITR page, select the ITR for which you want to file the condonation of delay and click continue.
  • Step 7. Now, provide the reason for the delay in verification and press submit.

Despite the fact that you can get a condonation of delay in filing ITR, filing after the due date can result in heavy penalties, notices and legal consequences. Therefore, it is best to avoid such a havoc.

FAQs on How to File Condonation of Delay in ITR

Q- What is the time period for submitting a condonation request?

Even though there is no such time limit or deadline for submitting the request for condonation of delay, you must make sure to file it at the earliest when you realize there is a delay in filing the ITR or verifying the ITR.

Q- Can my condonation request get rejected?

There is no guarantee that your condonation request will be accepted. It lies solely at the discretion of the Income Tax Department. If the Income tax department finds your reason for delay genuine enough, it might grant you a condonation of delay.

Q- What happens if the condonation request is approved?

If the request for condonation of delay gets approved by the Income Tax department, you can file a late ITR without facing any penalties.

Q- How to check the status of the condonation request?

You can check your request status for condonation of delay on your dashboard of the e-filing portal of the Income Tax department.

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CA Abhishek Soni
CA Abhishek Soni

Abhishek Soni is a Chartered Accountant by profession & entrepreneur by passion. He is the co-founder & CEO of Tax2Win.in. Tax2win is amongst the top 25 emerging startups of Asia and authorized ERI by the Income Tax Department. In the past, he worked in EY and comes with wide industry experience from telecom, retail to manufacturing to entertainment where he has handled various national and international assignments.