CBDT Releases Circular On Condonation Of Delay For ITR Refunds And Carry Forward Loss U/S 119(2)(b)

On October 1, 2024, the Central Board of Direct Taxes (CBDT) issued Circular No. 11/2024, outlining new guidelines for condoning delays in the filing of income tax returns (ITRs) related to claims for refunds or carrying forward of losses under Section 119(2)(b) of the Income-tax Act, 1961. This circular supersedes all previous instructions and introduces a systematic framework for addressing delay-related claims, with provisions based on specified monetary thresholds.

The new guidelines under the Circular No. 11/2024 establish the following monetary limits for the authorities handling claims related to delays in filing ITRs:

Principal Commissioners of Income Tax (Pr. CsIT/CsIT) are authorized to manage claims involving delays for amounts up to ₹1 crore.

Chief Commissioners of Income Tax (CCsIT) are responsible for claims ranging between ₹1 crore and ₹3 crores.

Principal Chief Commissioners of Income Tax (Pr. CCsIT) will handle claims exceeding ₹3 crores.

The Central Processing Centre (CPC) in Bengaluru is now authorized to process applications for the condonation of delays in verifying income tax returns (ITRs).

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