Income tax refunds: The Income-Tax department issues an intimation notice under Section 143(1) of Income-tax Act, 1961. Taxpayers awaiting income tax refunds for financial year 2020-21 (assessment year 2021-22) can expect the same by April 30, 2024. According to Central Board of Direct Taxes’ (CBDT’) directive, taxpayers should regularly check their email for any intimation notice from the income tax department. These notices will contain details about the pending tax refund, if any, payable to the concerned taxpayers, CBDT said.
Subsequently, the income-tax department issues an intimation notice under section 143(1) of the Income-tax Act, 1961.
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This notification acts as verification that the submitted ITR has been processed successfully. If necessary, it is frequently followed by the crediting of the refund amount. But while they wait for their ITRs for income connected to FY 2020–21 (AY 2021–22) to be processed, some taxpayers find themselves in a state of uncertainty.
People who timely filed their returns but have not yet received their full refund are the main subjects of the delayed cases.
The CBDT acknowledged: “It has been brought to our notice that several returns for assessment year (AY) 2021–22, which were otherwise filed validly, could not be processed under sub-section (1) of section 143 of the Act due to certain technical issues or for other reasons not attributable to the assesses concerned.” As a result, notification about the processing of said returns could not be sent in the amount of time specified by section 143 of the Act’s sub-section (1). Because of this, even though the delay is not their fault, the taxpayers are unable to receive their rightful refund under the Act’s provisions.”
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Delayed returns
For returns related to AY 2021-22 (March 31, 2022), the original timeframe for CPC to process returns was one year from the end of the financial year in which the ITR was filed. Consequently, for FY 2020-21, the deadline for the income tax department to process refunds was March 31, 2023. After this timeframe lapsed, the CPC was unable to process ITRs or issue intimation notices under section 143(1).
Updated ITR or ITR-U
The Finance Act of 2022 introduced this provision, which permits taxpayers to file an updated ITR or ITR-U if they failed to report any income or failed to file their return for the relevant financial year.
Subject to specific requirements, an amended return may be submitted within 24 months, or two years, following the conclusion of the applicable assessment year. Therefore, taxpayers have until March 31 to file it if they neglected to do so for FY2020–21.
Deadline to file revised returns
It is to be noted that the deadline for submitting an updated income tax return (ITR) for the financial year 2020-21 will end on March 31, 2024. The Centre in 2022 introduced the Finance Act of 2022, which allows taxpayers who missed filing their return for the said financial year or failed to report any income to file an updated ITR or ITR-U. An updated return can be filed within 24 months (two years) from the end of the relevant assessment year (subject to certain conditions)
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