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- Section 119 of the Income Tax Act
- Key highlights
- What is Section 119 of the Income Tax Act?
- What are the Sub-sections of Section 119 of the Income Tax Act?
- Important Guidelines of Section 119(2) (b)
- Steps to File Return Under Section119(2) (b)
- Acceptance/Rejection of Claim Application Under Section 119 of the Income Tax Act
- Refunds Made Easy with Section 119 of the Income Tax Act
- FAQS - FREQUENTLY ASKED QUESTIONS
Section 119 of the Income Tax Act
Sec 139(1) ofthe Income Tax Act mandates you to file your returns on or before the last date of returns. Returns are filed to claim any excess of tax that you might have paid to the government or to carry forward the losses, if any, to be written off against income earned over the next few years. However, it is noticedcthat many people fail to file returns within the given time for various reasons. This does not mean that you are no longer eligible to apply for refunds. Under Section 119 of the Income Tax Act, you can still apply for refunds.
Key highlights
- Section 119 of the Income Tax Act lets you claim tax refunds after the due date of return filing.
- It accords CBDT (Central Board of Direct Taxes) with the power to authorise an income tax official of a lower rank, excluding Commissioner (Appeals), to entertain your claim applications for refund, exemptions, deduction or any other relief beyond the specified return date.
- It ensures that you are not denied your refund rights or claim losses.
- There are various sub-sections to section 119, including section 119(1), section 119(2) (a), section 119(2) (b), section 119(2) (c).
What is Section 119 of the Income Tax Act?
Section 119 of the Income Tax Act allows you to claim tax refunds after the last date of filing the returns expires. It authorises the CBDT to pass specific instructions to its employees to comply and allow you for claims deductions even after the expiry of the last date of returns.
What are the Sub-sections of Section 119 of the Income Tax Act?
The various sub-sections of Section 119 are as follows:
Section 119 (1)
This section deals with issuing specific directions to income tax officials to ensure proper implementation of the Act. However, it has to be noted that in cases where special jurisdiction or assessment needs to be done, no order by any official, especially the commissioner (appeals), can be issued. This is done to save you from any bias or prejudice.
Section 119(2) (a)
This deals with providing certain relaxations in case of waiver/reduction of interest under sections 234A, 234B, 234C, 234E and other penal consequences.
Section 119(2) (b)
This section deals with allowing applications for condonation of delay in filing returns. Condonation refers to special permission granted by the authorised official to file late returns without paying any kind of penalty. However, condonation of delay is allowed only if you manage to provide valid reasons and convince the concerned authority that you had genuine reasons behind not filing the tax return on time.
Section 119(2) (c)
This section deals with allowing claim deduction relaxation applicable under section IV/VI-A in cases where you fail to provide the required assessment details on the specified time but do so before the completion of the assessment by the IT official.
Important Guidelines of Section 119(2) (b)
Even though Section 119(2) (b)allows you to claim refunds beyond the due date, there are certain guidelines. These are as follows:
Monetary Claim Limit
CBDT has issued certain directives via a circular dated 09.05.2015, which states the level of tax official/authority authorised to accept/reject claim applications based on the claim amount.
Given below are the details of the maximum claim amount and the respective tax official empowered to deal with it
| Monetary Limit | Authority |
| Claim amount not exceeding ₹10 lakhs | The Principal Commissioners of income tax/ Commissioners of income tax (PR.CITs/CITs) |
| Claim amount exceeding ₹10 lakhs, but less than ₹50 lakhs | The Principal Chief Commissioners of income tax/ Chief Commissioners of Income Tax (PR.CCITs/CCITs) |
| Claim amount exceeding ₹50 lakhs | Central Board of Taxes |
Time Limit
The next guideline is the maximum time limit, i.e. the maximum time for filing claim applications under Sec tion119.Details of the time limit under various scenarios are given below:
| Scenario | Maximum Time Limit |
| Normal refund claims | Six years post-completion of the assessment year. |
| Claim refund based on a court order | In a pending court case, the time limit of 6 years is not considered until the time the case is pending with the court. However, once the case is over, claim applications must be made within 6 months of the end date of the court’s order or the end of the assessment year, whichever comes after. |
Some other points to be duly noted before filing claim requests under section 119 (2) (b):
- Excess tax deduction at source (TDS) collected at source
- Excess advance tax payments made
- Excess payment made towards self-assessment tax.
- Your income should not be taxable under the hands of a third person under the Income Tax Act of 1961.
- You will not be entitled to any interest on refund claims.
- The refund so claimed by you must be due to any one of the following reasons-
Steps to File Return Under Section119(2) (b)
You need to follow the below-mentioned steps to file a return under Section 119(2) (b):
- Login to the income tax e-filing portal and click on the “income tax returns” button available under the “e-file” tab
- Select the applicable assessment year and choose “Filing against notice/order”.
- Thereafter, click the filing section as “139 read with Section 119(2) (b)
- Finally, upload an XML/JSON, verify the details, and file your returns.
Acceptance/Rejection of Claim Application Under Section 119 of the Income Tax Act
The concerned authorities need to accept and reject/close the case within 6 months of having received the claim application. For instance, if you filed a claim application on 15th May 2023, the claim authority has to accept and close/reject the case by 15thNov 2023.
Refunds Made Easy with Section 119 of the Income Tax Act
Understand what is Section 119 of the Income Tax Act and how it works. If you are eligible for a refund, you can file your returns and claim it after the due date. Follow the correct tax filing process to claim your refunds and get your excess tax amount back.
FAQS - FREQUENTLY ASKED QUESTIONS
What does Section 119 mean?
Section 119 is an income tax section that lets you file returns after the specified due date expires.
What are the various sub-sections under Section 119?
The various sub-sections under sec-119 are Sec 119(1), Sec 119(2) (a), Sec 119(2) (b), Sec and119(2) (c).
What is the maximum time limit for claiming refunds under Sec 119?
Ideally, the time limit for claiming refunds in a normal claim refund scenario is 6 years post-completion of the assessment year. However, in case of a refund request arising based on a court order, the time limit is set at 6 months from the date of issuance of the court order.
What happens if you fail to file returns before the due date?
In such cases, you usually have to pay a penalty. However, you may file a condonation of delay under sec 119(2) (b) and request for waiver of the applicable penalty by citing valid reasons for delay.
How to respond to the notice issued by an IT officer?
You can respond to a notice issued by an IT officer in the following manner:
Login to the portal at www.incometax.gov.in, and click the ‘e-file’ tab or the ‘Pending actions’ button on the dashboard.
You or your representative (either your CA or lawyer) can post your reply to the notice here.
How will I be notified whether the authority accepts or rejects my claims?
The order notification will be made available under the ‘e-file’ tab by the authorised official, and an e-mail will be sent to you using your registered e-mail ID.
What is the condonation of delay?
Condonation of delay under sec 119(b) (2) lays down provisions for waiver of penalty to be paid by you in case of late filing of returns.
What is the main purpose of Sec 119?
The main purpose of section 119 is to ensure that you are not denied rightful return claims against income earned or losses incurred and to safeguard you against potential financial troubles. Provided that your failure to file returns was genuine and not purposely intended.
What is the maximum time the IT official takes to settle my refund claim?
The authorised IT official has to settle all your claim requests under Sec 119 within six months of the claim date.
Can anyone file a claim under Section 119?
Taxpayers eligible for a refund can file a claim under Section 119.
The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.
