The Income Tax Act of India is a crucial legislation that regulates the taxation system in the country. Among the many provisions in the Act, Section 119(2)(b) is one that provides relief to taxpayers in certain circumstances. In this article, we will discuss in detail what this section entails, the conditions under which it can be applied, and its implications for taxpayers.
What is Section 119(2)(b)?
Section 119(2)(b) of the Income Tax Act, 1961, provides the Central Board of Direct Taxes (CBDT) with the power to issue an order for the relaxation of any provisions of the Act, in the interest of taxpayers. The section is designed to provide relief to taxpayers who may be facing hardship due to unforeseen or unavoidable circumstances.
When Can Section 119(2)(b) be Applied?
The CBDT may issue an order under Section 119(2)(b) of the Income Tax Act in the following situations:
- Natural calamities: When a natural calamity such as a flood, earthquake, or cyclone occurs, the CBDT may relax certain provisions of the Act for the affected taxpayers.
- Strike or lockout: If a taxpayer is unable to comply with certain provisions of the Act due to a strike or lockout, the CBDT may provide relief.
- Technical difficulties: In case of technical difficulties faced by taxpayers while filing returns or other documents, the CBDT may relax the relevant provisions.
- x When there are administrative issues that prevent taxpayers from complying with the provisions of the Act, the CBDT may issue a relaxation order.
Implications for Taxpayers: The relaxation of provisions under Section 119(2)(b) can have significant implications for taxpayers. It can provide relief to those who may be facing genuine hardships and cannot comply with certain provisions of the Act. This can result in a reduction in penalties or interest charged on late payment or non-compliance.
However, it is important to note that the CBDT may only issue a relaxation order under Section 119(2)(b) in exceptional circumstances. Taxpayers are still required to comply with the provisions of the Act to the best of their abilities and ensure that all relevant documentation is filed on time.
Conclusion:
Section 119(2)(b) of the Income Tax Act is a crucial provision that provides relief to taxpayers facing unforeseen or unavoidable circumstances. The CBDT has the power to issue a relaxation order in certain situations, such as natural calamities, technical difficulties, and administrative issues. While the provision can have significant implications for taxpayers, it is important to remember that compliance with the Act is still mandatory.
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Frequently Asked Questions:
Q:1 What is Section 119(2)(b) of the Income Tax Act?
A: Section 119(2)(b) of the Income Tax Act provides the Commissioner of Income Tax the power to condone the delay in filing an income tax return.
Q:2 Who can avail of the benefits of Section 119(2)(b)?
A: Any taxpayer who has failed to file their income tax return within the due date can apply for relief under Section 119(2)(b).
Q:3 What is the time limit to avail of benefits under Section 119(2)(b)?
A: There is no specific time limit mentioned in the Act for availing benefits under Section 119(2)(b). However, the request for relief must be made within a reasonable time from the end of the relevant assessment year.
Q:4 What is the procedure for seeking relief under Section 119(2)(b)?
A: To seek relief under Section 119(2)(b), the taxpayer needs to file a written application to the Commissioner of Income Tax. The application should contain the reasons for the delay in filing the return and any other relevant information.
Q:5 What factors are considered while granting relief under Section 119(2)(b)?
A: The Commissioner of Income Tax considers various factors while granting relief under Section 119(2)(b), such as the reason for the delay, the period of delay, the taxpayer’s compliance history, the amount of tax payable, and any other relevant circumstances.
Q:6 What is the maximum time limit that can be granted for filing the return under Section 119(2)(b)?
A: There is no specific maximum time limit mentioned in the Act for granting relief under Section 119(2)(b). The Commissioner of Income Tax has the discretion to grant relief based on the facts and circumstances of each case.
Q:7 Can the relief be granted under Section 119(2)(b) for filing a belated revised return?
A: Yes, relief can be granted under Section 119(2)(b) for filing a belated revised return, subject to the conditions mentioned in the Act.
Q:8 Is there any penalty for filing a return after the due date even if relief is granted under Section 119(2)(b)?
A: Yes, the taxpayer is liable to pay interest under Section 234A of the Income Tax Act for filing the return after the due date, even if relief is granted under Section 119(2)(b).
