Have you not received refunds for Assessment Year 2021-22 (Fiscal Year 2020-21) even after filed validly? Do not worry. The Income Tax Department has revised its timeline for completing the assessment and inform the asessess by April 30, 2024. However, this will not cover cases under scrutiny.

In an order, dated March 1, the Central Board of Direct Taxes (CBDT) noted that due to certain technical issues, or for other reasons not attributable to the assesses concerned, several returns for AY 22, could not be processed. Consequently, intimation regarding processing of such returns could not be could not be sent within the timeframe under Section 143(1) of the Income Tax Act. “This has led to a situation, where the taxpayers are unable to get their legitimate refund in accordance with provisions of the Act, although the delay is not attributable to them,” the order said without giving numbers of such returns.

Section 143 of the Income Tax Act 1961 deals with assessment process and timeline for completing various steps including intimating the taxpayers about if any arithmetical errors, internal inconsistencies, tax calculation and verification of tax payment. Such intimation “shall be sent after the expiry of one year from the end of the financial year in which the return is made.” For example, if return has been filed for FY20-21 in July 2021, intimation can be sent any time till March 31, 2023.

The order further said that the after due examination, “to mitigate genuine hardship being faced by the taxpayers on the issue, the board relaxes the time-frame prescribed under the law and directs that all returns of income validly filed electronically for AY 2021-22 and for which date of sending intimation has lapsed, can now be processed.” It mentioned that administrative approval be required from Principal Chief Commissioner of Income Tax (Pr. CCIT) or Chief Commissioner of the Income Tax (CCIT).

“The intimation of such processing under Section 143(1) of the Act can be sent to the concerned assessee by April 30, 2024,” the order said. It also said that all subsequent efforts including issue of refunds should also follow as per prescribed procedure. According to Income Tax Department, refund processing starts only after the return is e-verified by the taxpayer. Usually, it takes 4-5 weeks for the refund to be credited to the account of the taxpayer. However, if refund is not received during this duration, the taxpayer must check for intimation regarding discrepancies in ITR; check email for any notification from the IT department regarding the refund. The taxpayer can also check refund status on the e-filing as per the process, the refund user manual.

However, the order has specified three categories of returns for which relaxed norms will not be applicable. First category is related to returns selected in scrutiny. Second category deals with returns remaining unprocessed, where either demand is shown as payable in the return or is likely to arise after processing it. And third category is returns remaining any reasons attributable to the assessee.

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