Income Tax: What is condonation of delay for filing of ITR?

Each taxpayer is supposed to file their income tax return within the time prescribed under section 139(1)/139(4) of the Income Tax Act. However, it may be possible due to any genuine hardship or reason, a taxpayer is not able to file an income tax return within the specified time.

In this kind of situation, there are two options with the taxpayer:

1. To file ITR-U u/s 139(8A), or

2. To file ITR under section 139(9A) read with order u/s 119(2) (b) of the I-T Act 1962 received after request for condonation of delay in filing ITR.

While filing ITR-U, the taxpayer has to face heavy additional tax, i.e., 25%, 50%, 60% or 70% of tax and interest as per section 139(8A).

What is condonation of delay?

Alternatively, in case of a genuine hardship, the taxpayer can file a condonation request under section 119 (2)(b). If the condonation request is accepted, there is no need to pay any interest or penalty for the delayed filing of the ITR. This means, condonation of delay in ITR filing is a special relief provided under section 119(2)(b).

When can you file this request?

Currently, the option to file an online condonation request has not started on the e-filing portal. Therefore, a manual application needs to be submitted before the Principal CIT of your jurisdiction with reasonable cause and its supporting documents as under:

>> Reasons for seeking condonation

>> Revised statement of computation of income

>> Reconciliation statement of 26AS if required

>> Proof of expenses claimed in the revised ITR not claimed in the original ITR.

>> and other relevant documents

Following this, PCIT will permit condonation and issue an order having a unique number, which needs to be entered while filing ITR.

Can one claim refund in condonation request?

Yes, it can be filed not only for late filing and verification of ITR but also for claiming a refund or carry forward, and set-off of losses. The request, meanwhile, must be accepted by the authorities only if there is a genuine hardship with the taxpayer.

Is it possible to file condonation request in online mode on e-filing portal?

Currently, the option to file an online condonation request has not started on the e-filing portal. Therefore, a manual application needs to be submitted before the principal CIT of jurisdiction along with a reasonable cause and supporting documents.

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