Under Section 240 of the Income Tax Act, 1961, refunds arising from appellate or other proceedings are granted automatically without requiring a separate claim from the taxpayer. Here’s a detailed breakdown: 1. Key Provisions of Section 240 Automatic Refund: If any amount becomes refundable due to an appeal, revision, rectification, or other proceedings(e.g., orders under Sections 154, 263, or […]
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Section 241A allows the Income Tax Department to withhold refunds in certain cases, even if a taxpayer is otherwise eligible for a refund. This provision balances taxpayer rights with the government’s need to protect revenue interests. 1. When Can a Refund Be Withheld? The Assessing Officer (AO) may withhold a refund if both of the following conditions are met: A notice
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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
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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
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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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Here’s a detailed explanation of Penalty under Section 271AAB(1A) of the Income Tax Act, 1961, applicable when a search is initiated on or after 15th December 2016 and undisclosed income is found: 1. Key Provisions of Section 271AAB(1A) Applicability: Triggered when a search under Section 132is conducted after 15-12-2016, and undisclosed income is discovered. Penalty Rates: 30% of undisclosed income:
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Here’s a detailed explanation of Penalty under Section 271AAC of the Income Tax Act, 1961, which applies to certain types of undisclosed or unexplained income: 1. Overview of Section 271AAC Section 271AAC imposes a penalty on taxpayers who fail to account for income categorized under Sections 68, 69, 69A, 69B, 69C, or 69D of the Income Tax Act. These sections
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Here’s a detailed breakdown of Section 271AAD of the Income Tax Act, 1961, which imposes penalties for false entries or omissions in books of account to evade tax liability: 1. Overview of Section 271AAD Introduced by the Finance Act, 2020, this section targets fraudulent practices like fake invoices and bogus entries in books of account, especially post-GST
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Here’s a detailed explanation of Penalty under Section 271H of the Income Tax Act, 1961, which applies to failures in furnishing TDS/TCS statements or providing incorrect information: 1. Overview of Section 271H Section 271H imposes penalties for: Delayed filingof TDS/TCS statements (e.g., Form 24Q, 26Q, 27Q). Furnishing incorrect informationin these statements (e.g., mismatched PANs, underreported deductions).
Penalty for Failure to Furnish Statements, etc. [Section 271H] Read More »
