Section 242 of the Income Tax Act, 1961, clarifies that a refund claim cannot be used to challenge the correctness of an assessment order. This means: Refund Claims ≠ Appeal Against Assessment A taxpayer cannot disputethe tax liability determined in an assessment while claiming a refund. Example: If the AO assesses ₹1 lakh as tax due, the […]
[Section 242]: Correctness of Assessment Not to Be Questioned Read More »
Section 244A governs the payment of interest on income tax refunds to assessees. Below is a detailed breakdown of its provisions, including rates, calculation methods, exceptions, and judicial interpretations: 1. Types of Refunds & Applicable Interest Rates (A) Refunds from Advance Tax, TDS, or TCS [Section 244A(1)(a)] Applicable to: Excess payment of: Advance tax Tax Deducted
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Section 245 of the Income Tax Act, 1961 allows the Income Tax Department to adjust (set off) a taxpayer’s refund against any outstanding tax demand (e.g., unpaid tax, interest, penalty). Below is a detailed breakdown of its provisions, procedures, and exceptions. 1. When Can a Refund Be Adjusted? The Assessing Officer (AO) can adjust a refund against an outstanding demand if: A valid
[Section 245]: Set-Off of Refund Against Outstanding Tax Demand Read More »
If you missed the deadline to claim a tax refund, you may still file a delayed refund claim under specific conditions. Here’s a step-by-step guide based on the Income Tax Act, 1961, and related rules: 1. Determine Eligibility for Delayed Refund Claim Normal Refund Claims: Filed within 1 year from the end of the relevant Assessment Year (AY)(e.g., for
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