The Central Board of Direct Taxes (CBDT) has made significant revisions to the monetary limits for condoning delays in filing returns of income, specifically for claiming refunds or carrying forward losses. In Circular No.7 of 2023, dated 31.05.2023, the CBDT has partially modified its earlier Circular No.9/2015 to address this matter.
Under the revised guidelines, Principal Chief Income Tax Commissioners (PCITs) and Chief Income Tax Commissioners (CITs) are now entrusted with the authority to accept or reject applications when the claim amount does not exceed Rs. 50 Lakh for any given assessment year. However, in cases where the claim amount exceeds Rs. 50 Lakh but does not surpass Rs. 2 Crore, the power of acceptance or rejection lies with Chief Commissioners of Income Tax (CCITs).
Furthermore, for claims that exceed Rs. 2 Crore but do not exceed Rs. 3 Crore in a single assessment year, Principal Chief Commissioners of Income Tax (PCCITs) are now vested with the authority to consider and decide on the acceptance or rejection of these claims. Claims surpassing the threshold of Rs. 3 Crore will be evaluated and determined by the CBDT itself.
It is important to note that these revised monetary limits will be applicable to applications and claims filed on or after 01.06.2023. However, the remaining guidelines stated in the previous circular of 2015 will remain unchanged and should still be adhered to.
Here’s a table summarizing the revised monetary limits for condoning delays in filing returns of income and claiming refunds or carrying forward losses:
| Claim Amount | Authority |
|---|---|
| Not more than Rs. 50 Lakh | PCITs/CITs |
| Exceeds Rs. 50 Lakh but not more than Rs. 2 Cr | CCITs |
| Exceeds Rs. 2 Cr but not more than Rs. 3 Cr | PCCITs |
| Exceeds Rs. 3 Cr | CBDT |
Overall, this revision by the CBDT provides a clearer framework for the acceptance or rejection of applications related to delayed filings for claiming refunds or carrying forward losses. By delegating specific powers to PCITs, CITs, CCITs, and PCCITs based on the claim amount, the CBDT aims to streamline the process and ensure a more efficient handling of such cases.
