Procedure for Filing a Delayed Income Tax Refund Claim

If you missed the deadline to claim a tax refund, you may still file a delayed refund claim under specific conditions. Here’s a step-by-step guide based on the Income Tax Act, 1961, and related rules:

1. Determine Eligibility for Delayed Refund Claim

• Normal Refund Claims: Filed within 1 year from the end of the relevant Assessment Year (AY)(e.g., for AY 2024-25, the deadline is March 31, 2026).
• Delayed Claims: Can be filed beyond 1 yearbut must be submitted within 6 years from the end of the AY (subject to approval).
• Exceptions:
• Refunds arising from appellate orders (Section 240)are processed automatically—no separate claim needed.
• TDS/TCS refunds: Must be claimed via ITR filing under Section 139(no standalone Form 30 for delayed claims).

2. Submit a Condonation Request

For claims filed after the 1-year limit, you must:

1. File Form 30(if no ITR was filed earlier) or an application for condonation of delay.
2. Provide Justification: Explain the reason for the delay (e.g., financial hardship, administrative errors, or legal disputes).
3. Attach Supporting Documents:

• • Proof of excess tax paid (TDS certificates, bank statements).
  • Evidence of genuine hardship (e.g., business losses, pending litigation).

Approval Authority:

3. Key Conditions for Approval

• The claim must be genuine and verifiable(no fraudulent intent).
• Time Limit: Condonation requests cannot be filed after 6 yearsfrom the end of the AY.
• Pending Court Cases: If a refund arises from a court order, the time spent in litigation is excludedfrom the 6-year limit.

4. Post-Submission Process

• Processing Time: The tax authority must decide within 6 monthsof receiving the application.
• Interest on Refund: If approved, interest under Section 244A(0.5% monthly) is paid from the date of excess payment to the refund date, excluding delays attributable to the taxpayer.

5. Judicial Remedies for Rejection

If the claim is denied:

1. File an Appealwith the CIT(A) or ITAT.
2. Writ Petition: Approach the High Courtif the rejection is arbitrary.

Example: In Beta Cashew & Allied Products vs. CIT, the Kerala High Court allowed a delayed claim due to proven financial hardship.

Summary Table

Note: For refunds held due to outstanding demands, follow the Section 245 adjustment process