The earlier window was opened from the end of the financial year to be filed till December 2019. Experts said that the move will help provide required liquidity during ongoing tough times.The Central Board of Direct Taxes has allowed processing of income tax refund claims in non-scrutiny cases for assessment years up to 2017-18 till October 31, 2020 instead of the earlier date of December 2019, allowing clearing up of old refunds cases.
The re-opening of the relaxation window has been given to prevent genuine hardships for taxpayers and address their pending grievances, in an order issued on Friday, since many taxpayers were not able to claim the past refunds due to some technical glitch or other issues.
“All validly filed returns up to assessment year 2017-18 with refund claims, which could not be processed under Section 143(1) and which have become time-barred, subject to exceptions, can now be processed with prior administrative approval of Pr CCIT/ CCIT concerned and intimation of such processing can be sent to the assessee concerned by October 31, 2020,” the Board said in the order dated July 10.
The exceptions include returns that are under scrutiny, where demand is payable or is likely to arise after processing or those that are unprocessed due to reasons attributable to the taxpayer.
Principal Director General of income tax (systems) will enable assessing officers on a case to case basis.
The earlier window was opened from the end of the financial year to be filed till December 2019. Experts said that the move will help provide required liquidity during ongoing tough times.
“This is a welcome step from the Government, which will not only allow taxpayers to receive their legitimate refunds, but more importantly help them improve their liquidity in these stressed times due to COVID19,” said Shailesh Kumar, partner at Nangia & Co LLP.
Source: indiatimes.com