CBDT’s Update on Processing Refund Claims: Extended Deadline
The Central Board of Direct Taxes (CBDT) has recently issued an order regarding the processing of refund claims under the Income-tax Act, 1961. This order highlights the extension of the timeframe and its significance.
The CBDT, in its order dated 05.07.2021 and 30.09.2021, relaxed the timeframe prescribed in the second proviso to sub-section (1) of Section 143 of the Income-tax Act, 1961. The order directed that all validly filed returns up to Assessment Year 2017-18 with refund claims, which could not be processed within the prescribed time limits, should be processed by 30.11.2021, subject to certain conditions and exceptions.
However, considering the pending taxpayer grievances related to the issue of refund, the CBDT has re-considered the matter. In order to mitigate the genuine hardships faced by taxpayers, the CBDT has further extended the timeframe mentioned in the previous order. The new timeframe, mentioned in para no. 2 of the order dated 30.09.2021, has been extended till 31.01.2024 for electronically filed returns of income.
All other contents of the previous order remain unchanged. This extension of the timeframe will provide relief to taxpayers and ensure the timely processing of refund claims.
CBDT’s Income Tax Refund Order: Extended Timeframe
F. No.225/132/2023/ITA-II
Government of India
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes
North Block, the 16 October, 2023
Order under section 119 of the Income-tax Act, 1961
Subject: Processing of returns with refund claims under section 143(1) of the Income-tax Act, 1961 beyond the prescribed time limits in non-scrutiny cases-regd.
Central Board of Direct Taxes (Board) vide its order under section 119 of the Income-tax Act, 1961 (Act) dated 05.07.2021 and 30.09.2021 on the captioned subject relaxed the timeframe prescribed in second proviso to sub-section (1) of Section 143 of the Act. It was directed that all validly filed returns up to Assessment Year 2017-18 with refund claims, which could not be processed under sub-section (1) of the Section 143 of the Act and which had become time-barred, should be processed by 30.11.2021, subject to the conditions/ exceptions specified therein.
- The matter has been re-considered by Board in view of pending taxpayer grievances related to issue of refund. To mitigate the genuine hardship being faced by the taxpayers on this issue, Board, by virtue of its power under section 119 of the Act and in partial modification of its earlier order under section 119 of the Act dated 05.07.2021 and 30.09.2021, supra, hereby further extends the time frame mentioned in the para no. 2 of the order dated 30.09.2021 till 31.01.2024 in respect of returns of income validly filed electronically. All other contents of the said order u/s 119 of the Act dated 05.07.2021 will remain unchanged.
- This may be brought to the notice of all for necessary compliance.