CBDT revises Monetary Limits of Condonation of Delay in Refund & Loss Carry Forward Claims [Read Circular]

The Central Board of Direct Taxes (CBDT) has published the circular revising the monetary limits of condonation of delay in refund claims and loss carry forward claims under Section 119(2)(b) of the Income Tax Act, 1961.

Additionally, it will take effect on June 1st, 2023. The other guidelines outlined in the Principal Circular No. 09 of 2015 were not altered by the revision.

The Income Tax Act's Section 119(2)(b) grants CBDT the authority to instruct tax authorities to approve any claim for an exemption, deduction, refund, or other relief under the Income Tax Act even after the deadline for filing such a claim has passed.

The monetary limits specified are:

• If the sum of such claims is up to 50 lakhs for any one assessment year, the Principal Commissioners of Income-tax/Commissioners of Income-tax (Pr. CsIT/CsIT) have the authority to approve or reject such petitions or claims.

• If the total of such claims exceeds Rs. 50 lakhs but does not exceed Rs. 2 crores for any one assessment year, the Chief Commissioners of Income-tax (CCsIT) shall be given the authority to approve or reject such petitions or claims.

• If the amount of the applications or claims exceeds Rs. 2 crores but does not exceed Rs. 3 crores for any one assessment year, the Principal Chief Commissioners of Income-tax (Pr. CCsIT) given the authority to approve or reject such applications or claims.

• The applications/claims for amounts exceeding Rs.3 crores shall be considered by the Board.

According to section 119(2)(b) of the Income-tax Act of 1961, the Circular prescribed detailed guidelines on the conditions and process to be followed for deciding applications for condonation of delay in filing Returns of Income (RsOI) claiming refund and Returns of Income (RsOI) claiming carry forward of loss and set-off thereof.

Sum up of new monetary limits:

• Principal Commissioners of Income-tax/Commissioners of Income-tax - up to 50 Lakhs
• Chief Commissioners of Income-tax - Rs. 50 lakhs - Rs. 2 crores
• Principal Chief Commissioners of Income-tax - Rs. 2 cores - 3 crores
• Exceeding Rs. 3 crores shall be decided by the Board i..e, CBDT

To Read the full text of the Circular CLICK HERE

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