{"id":25926,"date":"2019-10-26T11:00:30","date_gmt":"2019-10-26T05:30:30","guid":{"rendered":"https:\/\/enterslice.com\/learning\/?p=25926"},"modified":"2019-10-23T18:07:51","modified_gmt":"2019-10-23T12:37:51","slug":"implications-and-restriction-prescribed-under-section-119","status":"publish","type":"post","link":"https:\/\/enterslice.com\/learning\/implications-and-restriction-prescribed-under-section-119\/","title":{"rendered":"The Implications and Restriction Prescribed Under Section 119"},"content":{"rendered":"<p>The Income Tax Act, 1961, prescribes the time limit in the form\nof due dates for filing of the return, payment of advance tax, a deposit of\nTDS, etc. If the taxpayer fails to pay the tax by the due date, he\/she is penalized in different ways depending upon the\nseverity of negligence.<\/p>\n\n\n\n<p>For instance, if the taxpayer fails to file his return within the\ndue date of 31<sup>st<\/sup> July, he is not allowed to claim a refund of excess\ntax paid,\nset off and carry forward of losses, etc. <\/p>\n\n\n\n<p>Section 119 of the Income Tax Act, 1961, provides relief to such stringent and strict provisions of the Act. <strong><em>This section empowers the Central Board of Direct Taxes to authorize the Income Tax Officers to accept such return claiming the deductions, refunds, carry forward of losses, etc. even after the expiry of the due date. <\/em><\/strong><\/p>\n\n\n\n<p>Let&rsquo;s understand the provisions of this section in detail in the following paragraphs.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Section-119 of Income Tax Act, 1961<\/h2>\n\n\n\n<p>Section 119 empowers the CBDT to authorize and instructthe lower\nlevel of the Income Tax Authority.&nbsp; CBDT\nhas also issued various order and notification in exercise of powers conferred\nupon it under this section.<\/p>\n\n\n\n<p>Section 119(2) (b) also empowers the CBDT authorizing the income\ntax authorities to allow the late filing of return provided that they are\nsatisfied with the generous reason of taxpayer for not filing the return within\nthe due date.&nbsp; <\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Authority as per the Monetary Limit<strong> <\/strong><\/h3>\n\n\n\n<p>CBDT has set out certain guidelines for dealing with an\napplication vide its circular dated 09.05.2015. Monetary limits of claim are\nspecified under this circular based on which the application is accepted or\nrejected by the different levels of income tax authorities. <\/p>\n\n\n\n<p>Following is the list of the monetary claim and the authority\nempowered to deal with such application: <\/p>\n\n\n\n<ol><li><strong>In case the claim amount\nis up to INR 10 Lakhs:<\/strong>Such application can be dealt with by Principal Commissioner\nof Income Tax or Commissioner of Income Tax.<\/li><\/ol>\n\n\n\n<ul><li><strong>In case the claim amount exceeds INR 10 Lakhs but up to INR 50 Lakhs: <\/strong>Such application can be dealt with by Principal Chief Commissioner of Income Tax or Chief Commissioner of Income Tax.<\/li><\/ul>\n\n\n\n<ul><li><strong>In case the claim amount exceeds INR 50 Lakhs: <\/strong>Such an application can be dealt with by the Central Board of Tax.<\/li><\/ul>\n\n\n\n<figure class=\"wp-block-image\"><a href=\"https:\/\/enterslice.com\/income-tax-return-filing\" target=\"_blank\" rel=\"noreferrer noopener\"><img decoding=\"async\" loading=\"lazy\" width=\"730\" height=\"90\" src=\"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2019\/08\/INCOME-TAX-ADVISORY.png\" alt=\"INCOME TAX ADVISORY\" class=\"wp-image-23055\" srcset=\"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2019\/08\/INCOME-TAX-ADVISORY.png 730w, https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2019\/08\/INCOME-TAX-ADVISORY-300x37.png 300w\" sizes=\"(max-width: 730px) 100vw, 730px\"\/><\/a><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\">Time Limit of an Application<\/h3>\n\n\n\n<p>Following are timeline guidelines under Section\n119 for the taxpayer who is making an application as well as for the authorities to dispose of the case.<\/p>\n\n\n\n<ol><li><strong>Application<\/strong>: The taxpayer has to apply to the authority depending upon the\nmonetary claim within 6 years from the end of the assessment year.<\/li><\/ol>\n\n\n\n<p><strong>For Example<\/strong>, Mr. X has failed to file the return for the FY- 17-18 within the\ndue date of 31<sup>st<\/sup> July 2018 due to certain medical issues. He can\nfile an application to the Principal Commissioner for claiming the refund of\nINR 2 Lakhs within 31<sup>st<\/sup> March 2025.<\/p>\n\n\n\n<ul><li><strong>Closure of an Application:<\/strong> Authority should accept or reject and close the case within 6\nmonths from the end of the month in which an application was received by them. <\/li><\/ul>\n\n\n\n<div class=\"shadow1\"><strong>For example<\/strong>, Mr. X, in the above case, filed an application dated 16th June 2019, shall be accepted or rejected, disposed, or closed within 31st December 2019.<\/div>\n\n\n\n<h2 class=\"wp-block-heading\">Conditions to be fulfilled under section 119(2)(b)<\/h2>\n\n\n\n<p>Relief or the claim will be allowed under this section if the assessee\nfulfills the following condition:<\/p>\n\n\n\n<ul><li>An application is filed by the assessee himself, i.e., an income of one taxpayer cannot be taxed in the hands of others.<\/li><li>There will be no interest paid for the refund.<\/li><li>Refund claimed in an application shall be arising only out of the following:<\/li><li>Excess TDS; or<\/li><li>Excess self-assessment of tax; or<\/li><li>Advance tax paid.<\/li><li>Income tax authority pre-scrutinizes the application and approves the same only if it finds the same to be genuine and reasonable.<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">The Order passed under Section 119<\/h3>\n\n\n\n<p>CBDT has issued certain orders in exercising the powers conferred\nupon it under section 119:<\/p>\n\n\n\n<ul><li>The CBDT, in accordance with the powers conferred upon it under Section 119, has extended\nthe due date for filing the income tax return for the AY 19-20 from 31<sup>st<\/sup>\nJuly 2019 (as prescribed under section 139) to 31<sup>st<\/sup> August 2019.<\/li><li>It has extended the due date for filing the TDS statement in form\n24Q for the AY 2019-20 from 31<sup>st<\/sup> May 2019 to 30<sup>th<\/sup> June\n2019.<\/li><li>It has also extended the due date of the issue of the TDS\ncertificate in form 16 for the AY 19-20 from 15<sup>th<\/sup> June 2019 to 10<sup>th<\/sup>\nJuly 2019.<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Steps to file return u\/s 119(2) (b)<\/h3>\n\n\n\n<p>Once the authority accepts the application for the claim of\nrefund, the assessee can file an income tax return under this section by the\nfollowing procedure: <\/p>\n\n\n\n<ul><li>Visit the income tax website <a href=\"https:\/\/www.incometaxindiaefiling.gov.in\/\"><em>www.incometaxindiaefiling.gov.in<\/em><\/a> for e-filing the income tax return.<\/li><li>Select the &ldquo;e-file&rdquo; tab from the options.<\/li><li>After selecting e-file, there will be a drop-down menu from which assessee has to choose &ldquo;Income Tax Return.&rdquo;<\/li><li>Choose the assessment year for which the return is being filed.<\/li><li>Select the filing type and choose &ldquo;Filing against notice\/order.&rdquo;<\/li><li>Choose the filing section of &ldquo;section 139 read with section 119(2)(b)&rdquo;.<\/li><li>Upload the XML and complete the return filing by verifying it online through Aadhar OTP\/ Bank OTP\/ EVM generation or offline by sending a physical copy of ITR V to the central processing center, Bangalore.<\/li><\/ul>\n\n\n\n<div class=\"read\"><p><b>Recommended Post:<\/b> <mark><a href=\"https:\/\/enterslice.com\/learning\/section-194-h-of-the-income-tax-act-1961\/\" target=\"_blank\" rel=\"noopener noreferrer\">Section 194-H of the Income Tax Act, 1961<\/a><\/mark>.<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"<p>The Income Tax Act, 1961, prescribes the time limit in the form of due dates for filing of the return, payment of advance tax, a deposit of TDS, etc. If the taxpayer fails to pay the tax by the due date, he\/she is penalized in different ways depending upon the severity of negligence. For instance, [&hellip;]<\/p>\n","protected":false},"author":24,"featured_media":25960,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[1473,2435],"tags":[2798,2797],"acf":{"service_id":"127"},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v14.6.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>The Implications and Restriction Prescribed Under Section 119 - Enterslice<\/title>\n<meta name=\"description\" content=\"Section 119 of the Income Tax Act provides the facility to claim a refund in case of extra tax paid by the taxpayer. Read full story\" \/>\n<meta name=\"robots\" content=\"index, follow\" \/>\n<meta name=\"googlebot\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<meta name=\"bingbot\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/enterslice.com\/learning\/implications-and-restriction-prescribed-under-section-119\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The Implications and Restriction Prescribed Under Section 119 - Enterslice\" \/>\n<meta property=\"og:description\" content=\"Section 119 of the Income Tax Act provides the facility to claim a refund in case of extra tax paid by the taxpayer. Read full story\" \/>\n<meta property=\"og:url\" content=\"https:\/\/enterslice.com\/learning\/implications-and-restriction-prescribed-under-section-119\/\" \/>\n<meta property=\"og:site_name\" content=\"Enterslice\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/enterslice\" \/>\n<meta property=\"article:published_time\" content=\"2019-10-26T05:30:30+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2019-10-23T12:37:51+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2019\/10\/Section-119.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"630\" \/>\n<meta name=\"twitter:card\" content=\"summary\" \/>\n<meta name=\"twitter:creator\" content=\"@enterslice\" \/>\n<meta name=\"twitter:site\" content=\"@enterslice\" \/>\n<!-- \/ Yoast SEO plugin. -->","authorName":"Savvy Midha","authorImageUrl":"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2019\/10\/Savvy-Midha.jpg","authorDescription":"\"Savvy Midha holds the degrees of Bachelor of Commerce(honors), LL.B and Company Secretary. She is an experienced Legal and Financial writer with expertise in research, drafting, and copy-writing.\"","postViews":502,"readingTime":3,"nextPost":{"id":26052,"slug":"drop-in-gst-collection"},"prevPost":{"id":25925,"slug":"impact-of-section-44aa-and-44ab-of-income-tax-act"},"featuredMediaUrl":"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2019\/10\/Section-119.jpg","postTerms":"Income Tax","_links":{"self":[{"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/posts\/25926"}],"collection":[{"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/users\/24"}],"replies":[{"embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/comments?post=25926"}],"version-history":[{"count":0,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/posts\/25926\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/media\/25960"}],"wp:attachment":[{"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/media?parent=25926"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/categories?post=25926"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/tags?post=25926"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}