Condonation of delay under section 119(2)(b) of the Income-tax Act, 1961

The Central Board of Direct Taxes vide a circular dated 19th February 2020 has clarified the situation where application for condonation of delay is admissible on merit for filling of return of income in Form 9A and Form 10 for financial year 2016-2017; 2017-2018; and 2018-2019 and specifies the authority to deal with such applications.

 A large number of charitable institutions failed to comply with the provision relating to filing of return of income for assessment year 2016-17 onwards under the Income-Tax Act 1961 due to genuine hardship. As per statutory requirements, Income tax return has to be filed within due date prescribed under section 139 of the Income Tax Act 1961. Even an ITR filed but not verified is treated as an invalid return by the income tax department and the taxpayer would be required to file the ITR again as belated return because his original filling is treated as invalid. However, in case there was genuine hardship faced by taxpayer due to which he could not verify ITR on time, then there is a way which can save him from the hassle of filing your return. An individual can file a condonation delay request (or accepting and giving reasons explaining why one hasn’t verified their ITR). such relief is given to taxpayers based on the following criteria-

  1. Genuine hardship
  2. Claim is genuine and correct

Where application for condonation of delay in Form 9A and Form 10 is filed, and the return of income has been filed on or before 31st March of the respective assessment years; the Commissioners of income Tax (Exemptions) are authorized to admit such belated applications for condonation of delay in filling return of income. Other applications for condonation of delay shall be dealt with by respective authority under the Rule.

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