Filing ITR After Condonation of Delay Approval

Filing an income tax return after receiving a condonation of delay approval follows a specific process under Section 119(2)(b) of the Income Tax Act. This approval allows taxpayers who missed the deadline due to genuine reasons to file their return without facing late-filing penalties. The tax authority’s order acts as a formal clearance to proceed with filing for the relevant assessment year, ensuring compliance and enabling the processing of refunds or carry-forward of losses. Many individuals rely on platforms like TaxBuddy for guidance in preparing and filing these returns accurately after approval.

---

Table of Contents

• What Condonation of Delay Means in Income Tax Filing

• Eligibility and Grounds for Condonation Under Section 119(2)(b)

• Filing ITR After Condonation of Delay Approval

• Documents and Information Required for Post-Condonation ITR Filing

• How the Income Tax Department Evaluates Condonation Requests

• Impact on Refunds, Loss Carry-Forward, and Tax Computation

• Common Reasons for Rejection of Condonation Requests

• Filing Errors to Avoid When Filing ITR After Condonation Approval

• Role of TaxBuddy in Handling Condonation and Post-Approval ITR Filing

• Conclusion

• FAQs
  

What Condonation of Delay Means in Income Tax Filing

Condonation of delay is a relief mechanism that allows taxpayers to file an income tax return even after missing the statutory deadline. Instead of treating the delay as a default, the tax department grants permission to file the return if the taxpayer provides a valid explanation such as medical emergencies, unavoidable hardships, system failures, or circumstances genuinely beyond control. It prevents unnecessary penalties and enables the taxpayer to claim refunds or carry forward eligible losses. The approval is granted under Section 119(2)(b), which empowers senior tax authorities to accept a delayed filing when justified.

Eligibility and Grounds for Condonation Under Section 119(2)(b)

Eligibility for condonation under Section 119(2)(b) depends on whether the taxpayer can present a clear, genuine, and well-documented reason for missing the original filing deadline. The tax department is not looking for routine excuses; it assesses whether the delay arose from factors that were genuinely beyond the taxpayer’s control. Situations such as prolonged hospitalisation, major illnesses in the family, accidents, medical emergencies, or periods of immobilisation often qualify because they directly impact a person’s ability to comply on time. Practical difficulties like technical glitches on the income tax portal, failed Aadhaar–PAN verification, delayed issuance of Form 16 or audit reports, or financial statements arriving late from banks or employers are also considered valid grounds when properly supported with evidence.

Natural calamities such as floods, cyclones, or regional disruptions that affect access to documents or prevent timely filing are treated seriously, provided the taxpayer can show a reasonable connection between the event and the delay. In some cases, unexpected professional hardships, business disruptions, or unavoidable personal crises may also be accepted if substantiated with clear records.

While evaluating applications, authorities assess whether the taxpayer acted promptly after realising the lapse. A long history of habitual late filing or vague explanations reduces the chances of approval. Officers also consider whether the delay has caused any financial loss to the government, such as revenue leakage or withholding of large tax liabilities. If the filing primarily results in refunds, loss carry-forward claims, or compliance corrections with no adverse impact on revenue, requests are viewed more positively.

Good faith plays a major role. The taxpayer must demonstrate sincerity, transparency, and responsible conduct in earlier assessment years. Condonation is fundamentally a trust-based relief, so applicants showing consistent compliance, timely tax payment, and honest intent are more likely to be approved.

Filing ITR After Condonation of Delay Approval

Once approval is granted, the taxpayer can file the income tax return in the same manner as a belated return for the applicable assessment year. The correct ITR form must be selected, along with accurate details of income, deductions, and taxes paid. The return should reflect that the filing is taking place after condonation approval, and the e-verification step must be completed to ensure the return moves to processing. The Income Tax Department may ask for proof supporting the earlier condonation request, so relevant documents should remain easily accessible. With guided platforms like TaxBuddy, the entire process becomes simpler, especially for individuals unfamiliar with technical formalities.

Documents and Information Required for Post-Condonation ITR Filing

A taxpayer filing ITR after condonation approval should keep essential documents ready, including: • Copy of the condonation approval order • PAN, Aadhaar details, and past tax records • Income proofs such as Form 16, salary slips, or business income statements • TDS certificates, Form 26AS, AIS, and TIS records • Bank statements or interest certificates • Evidence previously submitted for the delay, such as medical records, system error logs, or affidavits These documents ensure accuracy and help address any follow-up queries from the department.

How the Income Tax Department Evaluates Condonation Requests

Authorities consider whether the delay was unavoidable and whether the taxpayer acted promptly upon discovering the default. The department assesses the credibility of the explanation, the completeness of supporting documents, and whether the return involves refunds, legitimate claims, or carry-forward losses. The compliance history of the taxpayer, the absence of fraudulent intent, and the time elapsed since the due date all influence the decision. Section 119(2)(b) requires the authority to pass an order within six months, ensuring timely resolution for both the taxpayer and the department.

Impact on Refunds, Loss Carry-Forward, and Tax Computation

Filing an income tax return after the condonation approval restores all the benefits that would normally be lost due to missing the original deadline. Refunds that were previously blocked because the return was not filed in time become fully eligible for processing once the department accepts the delay. If excess TDS, advance tax, or self-assessment tax has been paid, the refund flows through the regular verification and processing cycle without any penalty for late filing. This is particularly important for taxpayers who depend on timely refunds or have large TDS credits reflected in Form 26AS or AIS.

Condonation approval also plays a major role in loss carry-forward rights. Under normal circumstances, filing a return after the due date restricts the ability to carry forward business losses, capital losses, or certain specified losses to future years. With condonation approval in place, the return is treated as if it was filed within the permitted timeline, allowing the taxpayer to retain the right to carry forward losses for set-off against future income. This ensures that genuine business or investment-related losses are not wasted due to an administrative delay.

Tax computation after condonation approval follows the same rules as any valid return filed within the deadline. Income is calculated under the respective heads, deductions are applied based on eligibility, and tax liability is computed according to the applicable rates for that year. The approval essentially validates the return for all legal and procedural purposes, enabling the taxpayer to claim refunds, carry forward losses, adjust TDS credits, and regularize tax records without additional disadvantages. This relief is designed to protect taxpayers with genuine hardships from losing statutory benefits due to unavoidable delays.

Common Reasons for Rejection of Condonation Requests

Requests may be rejected when the reasons for delay are vague, unsupported, or insufficient. A history of non-compliance, repeated late filing, or lack of evidence significantly reduces the chances of approval. Authorities may also reject cases involving substantial delay without explanation, fraudulent intent, or returns intended solely to claim refunds without valid grounds. Incorrect format, incomplete submissions, or missing documents also contribute to rejection.

Filing Errors to Avoid When Filing ITR After Condonation Approval

Errors often arise from selecting the wrong ITR form, mismatched income details, missing tax credits, or failing to e-verify the return. Incorrect reporting of deductions, a mismatch between Form 26AS and income records, and ignoring AIS discrepancies also lead to complications. Failing to mention that the return is being filed post-condonation or overlooking supporting documents can result in processing delays. Using professional platforms like TaxBuddy helps avoid these issues by ensuring accurate and compliant filing.

Role of TaxBuddy in Handling Condonation and Post-Approval ITR Filing

TaxBuddy simplifies the condonation and post-approval filing process by guiding users through documentation, return preparation, and final submission. Its experts help identify valid grounds, prepare the condonation request, and ensure evidence is properly presented. After approval, TaxBuddy assists with accurate ITR filing, detection of mismatches, correction of AIS issues, and e-verification. This ensures a smooth compliance experience, especially for individuals unfamiliar with procedural requirements.

Conclusion

Filing an income tax return after receiving a condonation of delay approval requires careful documentation, accurate reporting, and timely submission on the income tax portal. With proper compliance and guided support, taxpayers can still secure refunds, protect eligible losses, and avoid penalties despite missing the original deadline. For anyone looking for assistance in tax filing, it is highly recommended to download theTaxBuddy mobile appfor a simplified, secure, and hassle-free experience.

FAQs

Q1. Does TaxBuddy offer both self-filing and expert-assisted plans for ITR filing, or only expert-assisted options? TaxBuddy offers both self-filing and expert-assisted plans to accommodate different levels of complexity. Self-filing is ideal for straightforward income types such as salary or basic interest income, where users can upload Form 16 and verify pre-filled details. Expert-assisted filing helps individuals with capital gains, business income, foreign income, deductions, or complex disclosures. A tax expert reviews the details, identifies potential mismatches, and ensures a compliant, accurate return before submission.

Q2. Which is the best site to file ITR? The Income Tax Department’s e-filing portal remains the official platform for filing returns in India. However, for individuals looking for automation, data import, expert review, and error-free filing, many prefer third-party platforms like TaxBuddy. Its guided process, AI-based checks, and expert support make filing smoother and reduce the chances of notices arising from incorrect submissions.

Q3. Where to file an income tax return? An income tax return can be filed either on the government e-filing portal or through platforms such as TaxBuddy that simplify the process. These platforms extract data from Form 16, AIS, and TDS records automatically, help correct mismatches, and ensure that the final return is compliant with income tax rules before submission.

Q4. What happens after filing ITR post-condonation approval? Once the return is submitted and e-verified, the department begins processing it like any regular ITR. Refunds, if any, are issued after verification of records. Losses become eligible for carry-forward, and tax credits are adjusted based on Form 26AS and AIS. The approval essentially restores the rights of the taxpayer that would have been lost due to delayed filing.

Q5. Can a taxpayer receive a refund after filing ITR with condonation approval? Yes, refunds are processed normally once condonation is granted. If TDS or advance tax was paid in excess, the refund becomes eligible for release after the return is verified. Processing time depends on the department’s internal timelines, but the approval ensures that the refund claim is recognised and validated.

Q6. Is e-verification mandatory after filing ITR post-condonation? Yes, e-verification is compulsory. Without it, the return remains incomplete and is not taken up for processing. The taxpayer can verify the return through Aadhaar OTP, net banking, Demat account authentication, or by sending a physical ITR-V to CPC Bengaluru. Completing e-verification quickly speeds up refund processing and closes compliance gaps.

Q7. Can losses be carried forward if the ITR is filed after condonation approval? Losses under heads like business, capital gains, or house property can be carried forward when the return is filed after condonation approval. The approval gives legal recognition to the delayed filing, which restores the eligibility for claiming future set-offs that would otherwise be lost in a late-filed return without condonation.

Q8. How long does the Income Tax Department take to decide on a condonation request? Section 119(2)(b) directs the concerned authority to dispose of condonation applications within six months from the date of receipt. Decision timelines may vary depending on workload, the clarity of supporting documents, and the validity of reasons provided. Submitting a complete and well-documented application increases the chances of timely approval.

Q9. What happens if a condonation request is rejected? A rejection means the taxpayer cannot file the return for that year, losing the right to claim refunds or carry forward losses. The department treats the case as a regular delayed filing without valid relief. In such situations, professional assistance may be needed to explore alternative remedies or request reconsideration if strong additional evidence is available.

Q10. What documents are required when filing ITR after condonation approval? The taxpayer should retain the condonation approval order, Form 16, salary slips, business income proofs, bank statements, Form 26AS, AIS, TIS, interest certificates, and any documents submitted earlier to explain the delay. These records help ensure accurate reporting and support any inquiry raised during processing.

Q11. Are penalties applicable after condonation of delay approval? Once the delay is officially condoned, late filing penalties are not levied. However, interest under applicable sections may still apply if taxes were unpaid before the due date. The approval covers only the delay in filing, not unpaid or underpaid tax liabilities. Correct reporting and timely tax payment are essential to avoid additional charges.

Q12. Can TaxBuddy assist in filing ITR after condonation approval? Yes, TaxBuddy helps with both the condonation application and the post-approval ITR filing. Its experts guide users on documentation, format, grounds for condonation, and the correct way to file the return after approval. The platform also helps identify mismatches, reconcile AIS issues, and ensure that the return is fully compliant before submission.