CBDT Extends Deadline For Processing Refund Claims In ITRs For Assessment Years 2018-19 to 2020-21

The CBDT has issued an order (F. No.225/132/2023/ITA-II dated December 01, 2023) addressing the processing of electronically filed income tax returns with refund claims under section 143(1) of the Income-tax Act, 1961, beyond the prescribed time limits in non-scrutiny cases.

Due to technical issues or reasons not attributed to the taxpayers, returns for assessment years 2018-19, 2019-20, and 2020-21 couldn't be processed within the specified timeframe. This resulted in taxpayers not receiving timely intimation regarding the processing of their returns and legitimate refunds, even though the delay wasn't their fault.

To address this, the CBDT had previously issued orders under section 119, extending the time frame for processing such returns. The latest order, dated October 16, 2023, provided time until January 31, 2024, for processing returns up to assessment year 2017-18.

Considering pending grievances related to refunds for assessment years 2018-19, 2019-20, and 2020-21, the CBDT, using its powers under section 119, relaxes the timeframe for processing. It directs that all electronically filed returns with refund claims for these assessment years, where the intimation deadline has passed, can now be processed with administrative approval. The intimation of this processing will be sent to the taxpayer by January 31, 2024.

The usual procedures for subsequent effects, including issuing refunds, will follow. To ensure safeguards, administrative approval from the concerned authorities will lead to necessary enablement by the Assessing Officer. The progress of these cases will be monitored by the respective authorities.

However, this relaxation does not apply to returns under scrutiny, unprocessed returns with payable demands or likely demands, and returns unprocessed for reasons attributable to the taxpayers.

You can view the full official notification through this link- https://incometaxindia.gov.in/Lists/Latest%20News/Attachments/628/Order-us-119-dated-01-1212023-extension-of-timeline-for-processing-of-returns-dated-04-12-2023.pdf 

Also Read: Comprehensive Guide to Internal Audits: From Types to Mandatory Compliance