Section 119 of Income Tax Act, 1961, is a provision in Indian Tax legislation that deals with the powers of Income Tax Department regarding the extension of time for filing returns and compliance. It is mainly designed to provide relief to all the tax payers in such cases where they may face genuine difficulties in adhering to deadlines.  In this article we will be covering the key provision of Section 119 and why it is important. So, let’s get started.

Key Provision of Section 119

Power to Extend Time Limits

Section 119 authorises the Central Board of Direct Taxes (CBDT) the authority to extend the time limits for compliance-related obligations. Income tax returns, Payment of taxes and other filings will be included in it. This grant will be assigned in cases where the taxpayers is facing any kind of genuine difficulty or any unforeseen circumstances.

Relaxation of Rules

Under this section, the CBDT can skip some certain rules if the taxpayers show that they have good reason for missing deadlines. This flexibility is important for those who are business owners and are dealing with unexpected problems lie health issues, natural disasters or other emergencies.

Application for Relief

Now the taxpayers can apply for relief under Section 119. They must apply to the income tax Return Filing authorities which includes the explanation of their circumstances. This application should also include supporting evidences to claim their extension or relaxation.

Conditions for Extension

The extension or relaxation granted under Section 119 is not automatic, there are some conditions that a taxpayer has to follow to claim their relaxation. Some of the conditions that are specified by the CBDT which a taxpayer has to comply with are documentation or proof of the reasons for the delay. This should only be used when there are genuine difficulties which a taxpayer is facing.

Importance and Impact

Section 119 is very important as it brings fairness in the tax system. By allowing for flexibility during genuine difficulties, it helps in mitigate the impact of unforeseen events on taxpayers. It also ensures that the taxpayers are not unduly penalized for circumstances that are not in their control. Get E- Filing of Income Tax Return Online Service with Legal Dev in all over the India.