According to CBDT Order Dated 1 march 2024, all electronically filed valid returns for AY 2021-22 with refund claims, for which the date of sending intimation has lapsed, can now be processed.
In a recent development, the Central Board of Direct Taxes (CBDT) has announced an extension of the time limit for processing Income Tax Returns (ITRs) of Assessment Year (AY) 2021-22. This move aims to address issues faced by taxpayers whose returns, validly filed electronically with refund claims, were not processed within the stipulated timeframe.
The CBDT noted that due to various technical glitches or other reasons not attributed to the taxpayers, many returns for AY 2021-22 could not be processed under section 143(1) of the Income Tax Act, 1961. As a result, intimation regarding the processing of these returns could not be sent within the prescribed timeframe.
This delay has caused genuine hardship for taxpayers those who rightfully owed refunds under the provisions of the Act, despite the delay being beyond their control. To alleviate this situation, the CBDT, exercising its authority under section 119 of the Act, has decided to relax the time-frame prescribed in the second proviso to section 143(1).
Here’s what you need to know:
All validly filed electronic returns for AY 2021-22 with refund claims, for which the date of sending intimation under section 143(1) has lapsed, can now be processed.
This will be done with prior administrative approval of the Principal Chief Commissioner of Income Tax (Pr. CCIT)/Chief Commissioner of Income Tax (CCIT) concerned.
Intimations of such processing under section 143(1) will be sent to the taxpayers by April 30, 2024.
All subsequent actions under the Act, including the issuance of refunds, will follow the prescribed procedures.
To ensure proper oversight and control, the CBDT has outlined the following steps:
Once administrative approval is granted by the Pr. CCIT/CCIT, the Principal Commissioner of Income Tax (Pr. CIT)/Commissioner of Income Tax (CIT) concerned will refer the case to the Directorate General of Income Tax (Systems) for necessary enablement to the Assessing Officer.
The progress of handling these cases will be closely monitored by the Pr. CIT/CIT concerned.
The relaxation mentioned above will not apply to the following types of returns:
a) Returns selected for scrutiny.
b) Returns that remain unprocessed, where either demand is indicated as payable or is likely to arise after processing.
c) Returns that remain unprocessed for reasons attributable to the taxpayer.
This move by the CBDT aims to provide relief to taxpayers facing delays in receiving their legitimate refunds. If you are one of the affected taxpayers, rest assured that steps are being taken to ensure the processing of your returns and issuance of refunds as per the law.
For more information or to access the official notification of the CBDT CLICK HERE
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