Refunds

Under the Income Tax Act, 1961, the right to claim a refund depends on who has paid the excess tax and under what circumstances. Here’s a breakdown of who can claim a refund: 1. The Assessee (Taxpayer) Themselves Primary claimant: The person who paid the tax (e.g., through TDS, advance tax, or self-assessment) and is entitled to […]

Under Section 237 of the Income Tax Act, 1961, the following persons are entitled to claim a refund of excess tax paid: 1. Primary Claimant: The Taxpayer (Assessee) Any individual, company, or entity who has paid tax in excessof their actual liability for a given assessment year is entitled to a refund. This includes excess payments through:

Yes, under Section 238 of the Income Tax Act, 1961, a person other than the assessee can claim a refund in specific scenarios. Here’s a detailed breakdown: Who Can Claim a Refund Under Section 238? Person Whose Income was Taxed in Another’s Hands (Clubbing Provisions) If income is clubbedunder someone else’s total income (e.g., spouse’s income under Section 64, minor’s

Under Section 239 of the Income Tax Act, 1961, and related provisions, here are the key details regarding the form for claiming a refund and the time limits for such claims: 1. Form for Claiming Refund Normal Cases (Filed with ITR): If the refund arises from a filed income tax return (ITR), no separate formis required. The refund is processed automatically

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

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

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 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

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

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