Condonation of Delay in Income Tax Filing- What if You Miss the Deadline

For a variety of reasons, it frequently becomes challenging to complete the ITR filing and e-verification process in the allotted time. You can get a pardon for your late ITR filing and e-verification by submitting a request to the Income Tax Department. This page provides a detailed explanation of the delay condonation procedure.

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Table of Content

What is Condonation of Delay in Income Tax Filing?

Essential Requirements for Filing a Condonation Request

Competent Authorities and Monetary Limits for Condonation of Delay

Revised Monetary Limits for Condonation of Delay

Steps for Filing a Condonation Request

Steps to Submit a Condonation Request for ITR Verification Delay 

Conclusion

Most Asked Questions

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What is Condonation of Delay in Income Tax Filing?

Each assessee or taxpayer must turn in their income tax return and complete their verification by a certain deadline. July 31st is the deadline for filing an ITR in India. On the other hand, the taxpayer may be subject to severe fines if he neglects to file the ITR by the deadline. The Income Tax Department offers special relief to taxpayers who file or verify their ITRs after the deadline, known as the "pardon of delay in filing." The assessors must use the e-filing site to submit a request for a pardon for the late ITR filing in order to be eligible for this benefit. The income tax officials may then decide to approve the request and provide the taxpayer with another opportunity to file the ITR if they see fit.

As a legal concept, condonation of delay includes the following: 

• Forgiveness for Missed Deadlines: it permits the excusal of missed deadlines for legitimate and reasonable grounds. 

• Common Use in Legal and Administrative Settings: It is frequently used in administrative, financial, and legal contexts to avoid fines and application rejections when delays arise from unanticipated events. 

• Discretionary Decision: Relevant authorities or courts have the final say on whether to grant a delay condonation.

• Fairness and Equity: The objective is to guarantee equity and fairness by considering sincere justifications for the postponement.

• Preservation of Rights: It assists people and organisations in protecting their rights when meeting deadlines is essential, such as in court or with financial transactions. 

• Case-Specific: Approval is contingent upon specific circumstances and cannot be assured. When asking for a delay to be excused, a strong justification must be provided.

Essential Requirements for Filing a Condonation Request

Before submitting a request for an ITR filing delay condonation, you need to have the following: 

• You must have created an account on the electronic filing system, have a working password, and use your user ID to submit the request for a pardon later on.

• Your bank account and PAN card need to be connected. 

• Both a demat account and a verified bank account are required. It should have e-verification enabled as well.

Competent Authorities and Monetary Limits for Condonation of Delay

To establish the income-tax authorities authorised to accept or reject applications for condonation of delay in filing income tax returns involving claims for refunds or carry forward of losses with their set-off, the Central Board of Direct Taxes issued Circular No. 9/2015, dated 09.06.2015, in 2015. The circular specified the following precise dollar amounts for each authority:

• Principal Commissioners of Income-tax or Commissioners of Income-tax (Pr.CsIT/CsIT): The maximum amount of money that these officers can manage in a single assessment year for claims is Rs. 10 lakhs. 

• Principal Chief Commissioners of Income-tax or Chief Commissioners of Income-tax (Pr.CCsIT/CCsIT): The maximum amount of money that these officers can manage in a single assessment year is Rs. 50 lakhs, although claims handled by them cannot exceed Rs. 10 lakhs.

• Central Board of Direct Taxes (CBDT): The Central Board of Direct Taxes (CBDT) has established a monetary threshold for claims beyond Rs. 50 lakhs are handled by CBDT. The highest authority in India's income-tax department is the CBDT.

Revised Monetary Limits for Condonation of Delay

The following new financial limitations for the carry forward of losses and the condonation of delay for refund claims take effect on June 1, 2023: 

• Principal Income Tax Commissioners/Commissioners (Pr.CsIT/CsIT): If a claim exceeds Rs 50 lakhs, the Principal Commissioners of Income-tax/Commissioners of Income-tax (Pr.CsIT/CsIT) have the authority to accept or reject the application or claim. 

• Chief Commissioners of Income-tax (CCsIT): If a claim is for more than Rs 50 lakhs but less than Rs 2 crore, the CCsIT have the authority to approve or disapprove it.

• Principal Chief Commissioners of Income-tax (Pr.CCsIT): If an application or claim exceeds Rs. 2 crores but does not exceed Rs. 3 crores, the Principal Chief Commissioners of Income-tax (Pr.CCsIT) has the authority to accept or reject it. 

• Central Board of Direct Taxes (CBDT): If an application or claim exceeds Rs 3 crores, the Central Board of Direct Taxes (CBDT) can review it. 

Remember that the 2015 Circular's recommendations regarding the carryover of losses and the condonation of delay for refund requests are still in effect. Let's say that there are not enough funds to cover the costs of forgiving late filings of refund or carryforward claims. The aforementioned agencies may then reject such claims or applications.

Steps for Filing a Condonation Request

The only method to avoid penalties if you fail to file the ITR by the deadline is to submit a request for a delay condonation. The steps to file the request are as follows: 

Step 1: Go to the IT Department's online filing portal. 

Step 2: Enter your ID and password to log in. 

Step 3: Go to your "Dashboard" and select "Services" from the menu bar. 

Step 4: From the drop-down option, choose "condonation request." 

Step 5: A page requesting a pardon will show up. Choose the choice Delay in filing ITR-V under Click "Continue" after selecting the kind of condonation request you wish to move forward with.

Step 6: Click "create condonation request" on the filing after time barred page. Input the necessary information on the "enter details and create ITR page." Choose the request type, assessment year, ITR, claim value, filing type, reason for filing late, and ITR type. 

Step 7: In the end, click "Submit." 

Step 8: A transaction ID and a success message are sent to you. 

Steps to Submit a Condonation Request for ITR Verification Delay 

You have to file a request for a pardon for the delay in ITR verification if, after filing it, you do not e-verify it within 30 days. When submitting a request for a pardon for the delay in ITR verification, adhere to these procedures: 

Step 1: Go to the website for electronic filing.

Step 2: Enter your ID and password to log in. 

Step 3: Go to the Dashboard, select "services" from the top bar, and then select "condonation request" from the drop-down list. 

Step 4: Choose "delay in submission of ITR-V" and hit "continue" on the screen where you submit your condonation request. 

Step 5: Click "Create condonation request" on the following page. 

Step 6: Choose the ITR for which you wish to submit the excuse for the delay and click "Continue" on the ITR page. 

Step 7: At this point, explain why the verification was delayed and hit submit. 

Conclusion

Not only can a request for a condonation of delay be made for late filing and ITR verification, but it can also be made for other reasons, such as requesting a refund or carrying over and offsetting losses. However, the assessing officer will only grant these requests in cases where the taxpayer is experiencing difficulty. This provision provides taxpayers with exceptional relief since, upon approval by the assessing officer, there is no need to pay interest or penalties if an ITR is filed after the deadline or to claim a refund.

FAQ

Q1. What is a condonation request?

The procedure of asking the Income Tax Department to grant you permission to validate your ITR (after 120 days of filing) or submit your ITR (after the deadline for filing) while justifying your delay is known as a "pardon of delay."

Q2. What happens after the condonation of delay in filing ITR?

A court or authority that accepts a petition for condonation of delay recognises that the petitioner was unable to file within the allotted time and permits the petitioner to proceed despite this issue. They can file a late ITR without incurring penalties if the Income Tax department grants their request for a condonation of delay. 

Q3. Can my condonation request be rejected?

The acceptance of your request for a pardon is not guaranteed. The Income Tax Department alone has the final say on it. The Income Tax Department may give you a delay condonation if it determines that your justification for the delay was valid.

Q4. What is the timeline for submitting a condonation request?

You must be sure to file the request for condonation of delay as soon as you discover there has been a delay in filing the ITR or verifying the ITR, even though there is no deadline or time restriction for doing so. 

Q5. What is the process for seeking condonation of delay in income tax filing?

To seek condonation of delay in income tax filing, taxpayers need to submit a request to the income tax authorities explaining the reasons for the delay. The request should include relevant supporting documents and evidence to justify the delay. The tax authorities will assess the request based on the merits of the case and may grant condonation if they deem the reasons provided to be genuine.

Q6. What are the consequences of failing to file income tax returns on time?

Failing to file income tax returns on time can lead to various consequences, including penalties and interest charges. Taxpayers may incur late filing fees, which can accumulate over time. 

Additionally, delayed filing may result in missed deadlines for claiming deductions and exemptions, leading to higher tax liabilities. Seeking condonation of delay can help mitigate these consequences to some extent.

Q7. What are some common reasons for seeking condonation of delay in income tax filing?

Common reasons for seeking condonation of delay include genuine hardships such as medical emergencies, natural disasters, or unavoidable circumstances that prevented timely filing of tax returns. 

Other reasons may include technical issues with online filing systems, delays in receiving necessary financial documents, or misunderstandings regarding tax obligations. Providing clear and compelling reasons supported by relevant documentation is crucial when requesting condonation of delay.

Q8. How can I check the status of the condonation request?

You can monitor the status of your request for a pardon for the delay on your dashboard within the Income Tax department's electronic filing system.

Q9. Is it possible to claim a refund after condonation of delay?

To request a pardon for overdue income tax refunds, an application must be submitted no later than six years from the end of the assessment year in question (not including the time a court case was ongoing).

Q10. Can anyone submit a condonation request on your behalf?

A representative assessee, an authorised signatory, or an ERI can make a request for a pardon on your behalf. 

Q11. Do all condonation requests get accepted?

No, the Income Tax Department has complete discretion over whether to grant your request for a pardon. 

Q12. What is the time limit for filing condonation requests?

There isn't a deadline for submitting requests for pardons. But, as soon as you discover that e-verification is delayed or that the ITR filing deadline has passed, it is advised that you file a request for a pardon.

Q13. What are the reasons for the condonation of delay in filing income tax return?

Illness, illiteracy, subsequent changes in the law, and imprisonment are some valid reasons for the condonation of delay in filing income tax returns.