How to file condonation of delay in filing ITR?

Income Tax ITR Filing
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I received an email that if I have not filed my ITR then I can file a belated return before 15th Jan’25. I was not able to file my ITR as I was admitted in the hospital due to a surgery. I have business losses that I want to carry forward but in belated return we cannot do the same. Is there any way with which I can still carry forward my losses for FY 2023-24. Please help.

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Hello @Amitabh_Verma,

While filing a belated return might seem like your only option now, there’s actually another alternative specifically available in your case — Condonation of Delay. Unlike belated returns, you will be allowed to carry forward losses and even avoid paying any penalties in this case.

Let me explain in detail.

What is condonation of delay?

People who missed the original deadline for ITR filing due to genuine reasons can request the Income Tax Department to condone (forgive) the delay and allow them to file their return.

Reasons could include medical emergencies, natural calamities, technical glitches, etc.

Recently, the CBDT (Central Board of Direct Taxes) has issued a circular which mentions key points you should know when requesting for condonation of delay. Here’s a summary of the circular:

  1. The income tax authorities will ensure that the taxpayer was not able to file the ITR within the deadline due to reasonable cause and it was a case of genuine hardship.

  2. The application of condonation can be done up to 5 assessment years after the end of the relevant assessment year. In your case, you can apply for a condonation request of AY 2024-25 (FY 2023-24) till the end of AY 2029-30.

    Note: If there were court proceedings related to your income, and a refund claim arose after the court’s order, the duration of those proceedings will be excluded from the calculation of the five-year limit in applying for condonation of delay.

    For more details, you can refer to the official CBDT circular here.

How to apply for condonation of delay on Income Tax Portal?

  1. Login to the Income Tax e-Filing portal and click on ‘Condonation Request’ under the ‘Services’ tab.
  2. Select ‘Allow ITR filing after time-barred’ and continue
  3. Select ‘Create Condonation Request’
  4. Ensure your application includes a clear explanation of the reason for the delay and any supporting documents to justify your case.
  5. The designated authority will review your application and decide whether to accept or reject based on the merit of your request.

For a step-by-step guide on filing the condonation request, refer to this detailed article: Condonation of Delay Process.

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