Claim your Income Tax Refund for Past six years

Claim your Income Tax Refund for Past six years

Prevailing Law on filing of return for claiming Income tax refund AND for claiming loss :

• Filing your ITR is mandatory, if your total income exceeds the basic exemption limit (which is Rs. 2,50,000/- for current A.Y 2015-16)

•  If your total tax liability is lower than the aggregate of TDS and other taxes paid like advance tax or self assessment Tax – You have to file ITR within the time limit to claim tax refund.

•  To claim income tax refund, ITR should be filed within a period of two years from the end of financial year for which claim of refund relates. For example – for F.Y 2013-14, due date is 31st july 2014, still you can file your ITR by 31^st March 2016, to claim tax refund.

• ITR should be filed within due date as per the law, which is 31^st July of respective assessment year (For A.Y 2015-16, due date to file your income tax return is 31^st Aug 2015)  

•  Similarly, in case you want to carry forward any losses suffered during the year, you have to file your return within respective due date.

New Guideline  for extension of time limit to file ITR

• Under the provision under Income tax Act, CBDT (Central Board of Direct Taxes), has issued comprehensive guidelines for granting relaxation from these requirements.

• CBDT has issued circular no 09/2015, prescribing the procedure to condone the delay for claiming income tax refund/ carry forward of losses.

• Time Limit - You can make a request to condone the delay in filing of return within six years from the end of the assessment year in respect of which the return is to be filed. So you can make an application for condonation of delay for any financial year ending on 31.03.2009 or thereafter.          

•  Powers of acceptance / rejection :   
• In case, amount of claim is not more than Rs. 10 Lacs for any one assessment year – Principal Commissioner/ commissioner of Income Tax
•   Rs. 10 Lacs to 50 Lakhs – Principal Chief commissioner/ Chief commissioner of Income Tax.
• Claim for amount exceeding Rs. 50 Lacs – CBDT.

• In a case where refund claim has arisen consequent to a Court order, the period for which any such proceedings were pending before any Court of Law shall be ignored while calculating the said period of six years, provided such condonation application is filed within six months from the end of the month in which the Coon order was issued or the end of financial year whichever is later.

• CBDT has not prescribed any form or format to file such application, so applications can be made on simple plain paper stating the facts of the case in detail.

• Application should be accompanied with computation of total income & tax thereon for all assessment years, for which claim relate.