Many people discover an old refund only when they look at Form 26AS or AIS. TDS was deducted on salary, fees, interest or rent, but no ITR was filed for that year.
Now the due date and even the belated return date have passed.
The common question we hear at our office is simple: “Is this money gone?”
Not always. The Income-tax Act allows a special route called section 119(2)(b) condonation of delay. Under it, you can ask the Income Tax Department to accept your late refund claim, if you can show a genuine reason for the delay.
In this guide, we explain how to claim an old income tax refund through this route, what documents you need, how the application works, and where people usually go wrong.
TDS stuck for a year where no ITR was filed?
Share your PAN-wise Form 26AS or AIS. We will check whether a refund is due and whether the year is still within the condonation time limit.
Table of Contents
- Why This Topic Matters
- Who Needs This Service or Information
- Key Points About Section 119(2)(b) Condonation of Delay
- What Section 119(2)(b) Actually Does
- Time Limit: Five Years
- Who Decides Your Application
- Main Conditions for Refund Cases
- A Note on the New Income-tax Act
- Documents Required
- Step-by-Step Process
- Common Mistakes to Avoid
- How a CA Can Help
- Local Relevance
- Frequently Asked Questions
- Conclusion
- About the Author
Why This Topic Matters
A refund is your own money. It is tax that was deducted or paid in excess of what you actually owed.
If you never file an ITR for that year, the department has no claim from you to process. The refund simply stays with the government.
Excess TDS, TCS or advance tax paid for a past year.
Applications are not entertained beyond five years from the end of the assessment year.
An updated return cannot be used to claim or increase a refund.
The return is filed only after the delay is condoned.
For small earners, this can be a big amount.
There is also a time angle. Under the current CBDT circular, a condonation application for refund is not entertained beyond five years from the end of the relevant assessment year. Waiting too long can close the door completely.
And you cannot use an updated return (ITR-U) to claim or increase a refund. So for a year where the belated return date has passed, condonation is usually the only practical route.
Who Needs This Service or Information
This route is relevant if you had tax deducted or paid in a past year, did not file an ITR, and are now beyond the belated return deadline.
| Taxpayer Type | Typical Situation We See |
|---|---|
| Salaried employees | Employer deducted TDS, but no return was filed because they thought “TDS is already paid”. |
| Freelancers and professionals | Designers, doctors, consultants and tutors where clients deducted TDS under section 194J or 194C. |
| Senior citizens and housewives | TDS on FD interest, without knowing a return was needed to get it back. |
| Small shopkeepers and traders | Advance tax paid, but filing missed during a busy or difficult year. |
| E-commerce sellers | TDS/TCS reflected in Form 26AS, but no return filed. |
| People facing hardship | Abroad, hospitalised, or dealing with a death in the family during the filing period. |
| Legal heirs | Refund of a deceased person for earlier years was never claimed. |
Key Points You Should Know About Section 119(2)(b) Condonation of Delay
Request, Not a Right
The officer has discretion. Your reason for delay matters a lot.
Genuine Hardship
The delay must be explained with specific facts and supporting proof.
No Interest
You get the refund amount, not interest under section 244A.
What Section 119(2)(b) Actually Does
Section 119(2)(b) of the Income-tax Act, 1961 lets the CBDT authorise tax officers to admit a claim for refund (or deduction, exemption or loss) after the normal time limit, to avoid genuine hardship.
The officer then examines the claim on merits.
Time Limit: Five Years from the End of the Assessment Year
As per CBDT Circular No. 11/2024 (dated 1 October 2024), applications filed on or after that date must be made within five years from the end of the assessment year concerned.
| Financial Year | Assessment Year | AY Ends On | Five Years Run To |
|---|---|---|---|
| FY 2020-21 | AY 2021-22 | 31 March 2022 | 31 March 2027 |
Who Decides Your Application
The circular divides power based on the refund amount claimed for a year. As per the circular, as we understand it:
| Refund Claim for the Year | Authority |
|---|---|
| Up to Rs. 1 crore | Principal Commissioner / Commissioner of Income Tax (jurisdictional) |
| Above Rs. 1 crore up to Rs. 3 crore | Principal Chief Commissioner / Chief Commissioner |
| Above Rs. 3 crore | CBDT |
For most individuals and small businesses, the application goes to the jurisdictional Pr. CIT / CIT.
Main Conditions for Refund Cases
The income must not be taxable in the hands of any other person.
Excess TDS, TCS, advance tax or self-assessment tax.
You must show a reason that prevented timely filing.
No interest under section 244A on a refund granted through condonation.
A Note on the New Income-tax Act
Not sure if your old year is still within time?
Tell us the financial year and the TDS amount. We will check the five-year limit and the refund position before you spend time on paperwork.
Documents Required
Keep these ready before the application is drafted.
Identity and Portal
- PAN and Aadhaar (linked)
- Login access to the income tax e-filing portal
- Pre-validated bank account for refund
Tax Credit Records
- Form 26AS and AIS/TIS for the year
- Form 16 / Form 16A / TDS certificates
- Advance tax or self-assessment tax challans, if any
Income Working
- Bank statements for that year
- FD interest certificates
- Computation of income showing how the refund arises
Proof of Reason for Delay
- Medical records and hospital discharge summary
- Passport/visa stamps showing you were abroad
- Death certificate of a family member, or other relevant evidence
- Affidavit or signed declaration, where your CA advises it
Step-by-Step Process
For the latest year, a belated return may still be allowed. If yes, file that instead. Condonation is for years where that window has closed.
Download Form 26AS and AIS. Prepare a proper computation of income for that year and confirm that tax paid is more than tax payable.
Count five years from the end of the relevant assessment year. If it is close, file the application first and complete the rest quickly.
Be specific with dates and attach proof. “I was busy” will rarely work. “I was hospitalised from July to December 2021” with records is a strong case.
On the e-filing portal, go to Services and choose the Condonation Request option for section 119(2)(b). Select the assessment year, enter the reason and upload supporting documents. A written application can also be addressed to the jurisdictional Pr. CIT / CIT, as your CA advises.
The officer may ask for more documents or a hearing. Reply on time and keep copies of everything.
If the delay is condoned, you will receive an order allowing you to file the return. If it is rejected, discuss further remedies with your CA.
After approval, file the return for that year, selecting the filing section for 119(2)(b) and quoting the order number and date.
Verify the return within the allowed time and track the refund status on the portal.
Need help drafting the condonation request?
We prepare the refund computation, draft a fact-based explanation of the delay, organise evidence and file the request on the portal.
Common Mistakes to Avoid
| Mistake | Why It Creates Risk |
|---|---|
| Filing an ITR first without approval | For a year beyond the belated date, the portal will not accept a normal return claiming refund. The order comes first, then the return. |
| Trying ITR-U for a refund | An updated return cannot be used to claim or increase a refund. |
| Giving a weak or vague reason | “Not aware” or “forgot” without any supporting facts is often rejected. |
| No documentary proof | A good reason without evidence carries little weight. |
| Missing the five-year limit | Many people come in a few weeks too late for the oldest year. |
| Wrong refund computation | If the claimed refund does not match 26AS/AIS, the application may be questioned or rejected. |
| Ignoring income not shown in 26AS | The return filed after approval must be correct and complete. Hiding income creates fresh problems. |
| Not following up | Applications can sit pending. Track the status and respond to notices promptly. |
How a CA Can Help
The application itself looks short, but the outcome depends on how well the facts are presented. A Chartered Accountant can:
- Check whether you are still within the belated return window or need condonation.
- Reconcile 26AS, AIS and bank records to confirm the correct refund.
- Draft a clear, fact-based explanation of the delay and organise evidence.
- File the request on the portal and handle queries or hearings.
- File the ITR correctly after the order and follow up on the refund.
- Advise on other pending years, so the same issue does not repeat.
We also tell clients honestly when a case looks weak, so they can decide whether it is worth pursuing.
Condonation request rejected or pending for long?
Get the order, notices and your earlier application reviewed before deciding the next step.
Local Relevance: Dwarka, Janakpuri, Vikaspuri, Tagore Garden and Uttam Nagar
West Delhi has a large number of salaried employees, retired persons with FD income, tuition teachers, small traders and young freelancers.
In our practice in Uttam Nagar, we regularly meet people from Dwarka, Janakpuri, Vikaspuri and Tagore Garden who had TDS deducted for years but never filed a return.
Many of them only find out when a bank or a loan application asks for ITRs, or when they check AIS for the first time. By then, some years are past the normal filing date.
Having a local CA helps because documents like medical files, old Form 16s and bank certificates can be reviewed in person, and follow-ups are easier. We also serve clients across Delhi NCR and PAN India online.
Frequently Asked Questions
Can I get an income tax refund if I did not file my ITR for that year?
Yes, possibly. If the belated return date has passed, you can apply for condonation of delay under section 119(2)(b). If approved, you can file the return and claim the refund.
How many years back can I claim a refund?
As per CBDT Circular No. 11/2024, the application must be made within five years from the end of the relevant assessment year. Verify the latest position before applying.
Will I get interest on the old refund?
No. Refunds allowed through a condonation claim do not carry interest under section 244A.
Can I file an updated return (ITR-U) to claim the refund instead?
No. An updated return cannot be filed to claim a refund or increase one.
What reasons are usually accepted as genuine hardship?
Serious illness, hospitalisation, being abroad, death in the family, or similar situations backed by proof. Each case is judged on its own facts.
Where do I file the condonation request?
Through the income tax e-filing portal under the condonation request option, or by application to the jurisdictional authority. For most individuals, the Pr. CIT / CIT decides.
How long does approval take?
There is no fixed answer. It depends on the jurisdiction and the case. Keep tracking the status and respond to queries quickly.
What if my application is rejected?
Ask your CA to review the order. Depending on the reasons, further remedies may be available, including a writ petition in suitable cases.
Can a legal heir claim the refund of a deceased person?
Yes. The legal heir first registers as the representative assessee on the portal, then follows the same condonation process.
Do I need a CA for this?
It is not mandatory, but the explanation and evidence decide the outcome. A CA helps present the case properly and avoid rejection on technical grounds.
Conclusion
An unfiled ITR does not always mean a lost refund. Section 119(2)(b) condonation of delay gives taxpayers a fair chance to claim old income tax refunds.
The conditions are simple to state: the reason for delay must be genuine, the refund must be correctly worked out, and the application must be made within the time limit.
The key is to act early, keep your evidence ready and present the facts clearly. If one of your older years is close to the five-year limit, do not wait.
We also help with income tax return filing, GST registration and returns, TDS returns, accounting and compliance.
Have TDS or tax stuck for a year where no ITR was filed?
Talk to Rakesh Rathore and Associates, Chartered Accountants. We review your 26AS and AIS, tell you honestly whether a condonation claim makes sense, and handle the application, ITR filing and refund follow-up. Visit our office in Uttam Nagar, or connect online from anywhere in Delhi NCR or India.
About the Author
CA Rakesh Rathore
CA Rakesh Rathore is a Chartered Accountant qualified in 2014, with practical experience in GST, Income Tax, GST notices, Income Tax notices, GST registration, company formation, and LLP formation. He advises manufacturers, traders, educational institutions, IT businesses, and construction industry clients on taxation, registration, compliance, and business advisory matters.
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