Template Description

This is a formal request letter template for condonation of delay due to bonafide belief that it was not liable to file return of income, under section 119(2)(b) of the Income Tax Act, 1961. The template is a 2-page MS Word file can be use to submit to the respective Income Tax Authorities. The intended users of this template include tax practitioners, accountants, and business entities.

Understanding the Request for Condonation of Delay

What is Request for Condonation of Delay about under section 119(2)(b)?

A request for condonation of delay under section 119(2)(b) is a formal appeal made by taxpayers to the Income Tax Department, requesting them to condone the delay in filing income tax returns, typically due to unforeseen circumstances or legitimate reasons. This provision empowers the authorities to offer relief when a taxpayer's claim would otherwise be time-barred.

Procedure for Filing a Request to Condon Delay:

• Drafting the Request Letter: The first step is drafting a formal request letter to the concerned authority, providing all essential details like assessee’s name, PAN, and reasons for the delay in filing the return.

• Explanation for Delay: Clearly explain the reasons for the delay. Valid reasons could include illness, financial hardship, or genuine misunderstanding of tax obligations. Be specific and honest about the cause.

• Details of the Assessee’s Status: Mention the business or profession of the assessee, their registration details, and whether they were eligible for any deductions under relevant sections of the Income Tax Act. In many cases, the assessee might have been under the bonafide belief that they were not required to file a return due to low taxable income.

• Legal Compliance and Assessee’s Intent: The letter should emphasize that the delay was not intentional, and there was no attempt to evade taxes. The request should appeal to the principles of natural justice, citing the legitimacy of the assessee’s situation.

• Specific Relief Sought: Clearly request the Income Tax Authority to condone the delay in filing the return for the relevant Assessment Year and allow the deduction or tax relief as per the applicable sections of the Income Tax Act.

• Supporting Documents: Attach any relevant documents, such as the tax return filed belatedly, registration certificates, and proof of deduction eligibility to support your request.

• Submission: Submit the request along with a copy to the Jurisdictional Assessing Officer. Ensure that the submission is done on time and is properly addressed to avoid further delays.

Conclusion

A request for condonation of delay under section 119(2)(b) is an essential recourse for taxpayers who have a legitimate reason for filing their returns late. This letter is a formal representation to the tax authorities, seeking relief on reasonable grounds, ensuring that no undue penalty is imposed on the taxpayer.