Missed the ITR Deadline? Filing a Return After Condonation of Delay Under Section 119(2)(b)

Every year, thousands of salaried taxpayers discover in September that they never filed their Income Tax Return, even though their employer had already deducted TDS and a genuine refund was sitting unclaimed. Once the belated-return window under Section 139(4) has closed, the e-filing portal simply refuses a normal return. The route back is Section 119(2)(b) of the Income-tax Act, 1961, read with CBDT Circular No. 11/2024 dated 1 October 2024, which lets a competent authority condone the delay and permit a fresh filing without penalty. This article walks through exactly how that works.

The Scenario

Consider Meera, a salaried professional whose employer deducted Rs 40,000 as TDS during a financial year. She changed jobs, misplaced her Form 16, and forgot to file her return. By the time she remembered, both the original due date under Section 139(1) and the belated-return cut-off under Section 139(4) had passed. When she logged into the portal, the assessment year was greyed out and no return type was available. Her Rs 40,000 refund was effectively frozen because the law offers no ordinary window to file after the Section 139(4) deadline.

This is the precise situation Section 119(2)(b) was designed for. Meera does not have a dispute with the department; she simply missed a deadline and wants to claim a refund that is legitimately hers. The provision empowers the Central Board of Direct Taxes (CBDT), through its delegated authorities, to admit a return of income after the statutory deadline where there is genuine hardship, so that a valid refund or loss claim is not defeated purely on a procedural lapse.

Statutory Answer

Section 119(2)(b) of the Income-tax Act, 1961 authorises the CBDT to direct income-tax authorities to admit an application or claim for a refund or deduction after the expiry of the statutory time limit, to avoid genuine hardship. The operating framework for individuals is CBDT Circular No. 11/2024 dated 1 October 2024, which superseded the earlier Circular No. 9/2015 and reset the timelines and monetary thresholds for such applications.

Two conditions sit at the heart of the provision. First, the claim must be correct and genuine, and the case must be one of genuine hardship on the taxpayer. Second, the delay must be condoned by a competent authority before the return can be filed; the taxpayer cannot self-certify a late return. Under Circular No. 11/2024, the authority who decides the application depends on the quantum of the claim, and the application must be made within five years from the end of the relevant assessment year.

The table below sets out the monetary thresholds under Circular No. 11/2024. These decide which officer within the department can accept or reject a condonation request.

Circular No. 11/2024 also directs that a condonation application should ordinarily be disposed of within six months from the end of the month in which it is received, so an approval is not left pending indefinitely. Crucially, once the delay is condoned and a valid order carrying a Document Identification Number (DIN) is issued, the taxpayer may file the return without any additional tax, interest or penalty attaching solely to the delay, because the filing is treated as being within an admitted window.

Worked Resolution

Return to Meera. Assume her figures fall under the FY 2025-26 new-regime structure, which we use here purely to illustrate the arithmetic of why her refund exists. Her gross salary is Rs 11,00,000, and after the new-regime standard deduction of Rs 75,000, her taxable income is Rs 10,25,000. You can reproduce these numbers with the Oquilia income tax calculator and compare regimes with the old vs new regime tool.

Applying the FY 2025-26 new-regime slabs to Rs 10,25,000 gives the following:

Because Meera's taxable income of Rs 10,25,000 is below the Rs 12,00,000 threshold, she qualifies for the Section 87A rebate, which is up to Rs 60,000 in the new regime for FY 2025-26. The rebate of Rs 42,500 wipes out her entire liability, so her net tax payable is Rs 0. Yet her employer had already deducted Rs 40,000 as TDS. That Rs 40,000 is a pure refund, and the only thing standing between Meera and her money is the missed deadline. You can model such deductions with the TDS calculator and confirm the new-regime tax with the new regime calculator.

The resolution runs in two stages. Stage one is the condonation application. Because Meera's claim of Rs 40,000 is well under Rs 1 crore, her application goes to the jurisdictional Principal Commissioner or Commissioner of Income-tax, and she must lodge it within five years from the end of the relevant assessment year, as Circular No. 11/2024 requires. She should attach proof of the TDS (Form 16 or the Form 26AS credit) and a plain explanation of why the return was not filed on time.

Stage two begins only after the delay is condoned and a valid order with a DIN is issued. On the e-filing portal she then selects the special filing type, described on the portal as filing after condonation of delay under Section 119(2)(b), and completes the return. At this stage no additional interest or penalty attaches purely because of the delay, and the refund of Rs 40,000, subject to the department's processing, becomes claimable.

There is one practical constraint worth flagging. Filing after condonation is available through the offline utility only; the department does not currently offer an online in-browser form for this filing type. The steps are: log in to the portal, select the relevant assessment year, choose the condonation filing type, prepare and upload the JSON generated by the offline utility, and note the transaction ID returned on submission. A valid bank account, pre-validated for refunds, and the DIN-bearing condonation order must both be in place before you begin.

Before you start, keep three things ready: the condonation order carrying its Document Identification Number (DIN), a pre-validated bank account for the refund credit, and the completed JSON from the offline utility. Missing any one of these is the most common reason a condonation filing stalls at the upload step. It also helps to have reviewed your Form 26AS and Annual Information Statement so the TDS you are claiming matches the department's own records to the rupee.

FAQ

What is Section 119(2)(b) of the Income-tax Act, 1961?

It is the provision that empowers the CBDT to direct income-tax authorities to admit a refund claim, loss claim or deduction after the statutory deadline has passed, in order to avoid genuine hardship. The current operating framework for such applications is CBDT Circular No. 11/2024 dated 1 October 2024. Learn the basics of a return in our ITR glossary entry.

How long do I have to file a condonation application?

Under Circular No. 11/2024, an application for condonation of delay must be made within five years from the end of the relevant assessment year. Understanding the difference between the financial year and the assessment year matters here, because the five-year clock runs from the end of the assessment year, not the financial year.

Who approves the condonation request?

It depends on the amount claimed. As per Circular No. 11/2024, claims up to Rs 1 crore are decided by the Principal Commissioner or Commissioner of Income-tax; claims above Rs 1 crore and up to Rs 3 crore by the Chief Commissioner; and claims above Rs 3 crore by the Principal Chief Commissioner of Income-tax. The authority should ordinarily dispose of the application within six months from the end of the month of receipt.

Will I have to pay a penalty or interest for filing late under this route?

Once the delay is condoned and a valid order carrying a Document Identification Number (DIN) is issued, you can file the return without any additional tax, interest or penalty attaching solely on account of the delay. Any self-assessment tax that would independently be due on your income is a separate question from the delay itself.

Can I file this return online through the normal portal flow?

No. Filing after condonation of delay under Section 119(2)(b) is available through the offline utility only. You log in, select the assessment year, choose the condonation filing type, upload the JSON prepared in the utility, and receive a transaction ID. An online in-browser form for this filing type is not currently offered.

What documents must be ready before I file?

You need a valid condonation order bearing a DIN, valid and pre-validated bank account details for the refund, and prior approval from the competent authority. Cross-checking your advance tax and TDS entries against Form 26AS before filing reduces the chance of a mismatch that delays your refund.

I only realised I have a carried-forward loss to claim, not a refund. Does 119(2)(b) still apply?

Yes. Section 119(2)(b) covers claims for carry-forward of loss as well as refund claims, and the same monetary thresholds under Circular No. 11/2024 determine which authority decides your case. If your earlier rectification was rejected, our guide to a Section 154 rectification request explains a related remedy.