[Section 238]: Can A Person Other Than the Assessee Claim Refund?

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?

1. 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 income under Section 64(1A)), the actual earner can claim the refund.
   • Example:
     • A wife’s income is included in her husband’s return, but excess TDS was deducted from her salary. She(not the husband) can claim the refund.

2. Legal Representatives
   • If the original taxpayer is deceased, insolvent, or incapacitated, the following can claim the refund:
     • Legal heirs(with succession certificate/will).
     • Court-appointed representatives(e.g., guardians for minors, receivers for insolvent persons).

3. Successor-in-Interest (Business/Property Transfer Cases)
   • If a business/property is transferred, and tax was paid by the previous owner, the new owner(successor) can claim the refund, provided the liability was passed on.
4. Tax Deducted for Another Person (TDS Cases)
   • If tax was deducted from a payment (e.g., contractor deducting TDS from subcontractor), but the recipientwas exempt or had lower liability, the recipient (not the deductor) can claim the refund.

Who Cannot Claim?

• A person who did not bear the tax burden(e.g., an employer cannot claim refund for TDS deducted from employees’ salaries).
• Third parties without legal right(e.g., a friend or relative unless they are legal heirs).

Procedure to Claim Refund (Non-Assessee Cases)

1. File Form 30(if no ITR was filed by the original assessee).
2. Submit Proof:

• • For clubbed income → Proof of actual income (e.g., salary slips, bank statements).
  • For legal heirs → Death certificate + succession certificate/will.
  • For TDS cases → Form 16A/26AS + PAN details.

3. Time Limit: 1 year from the end of the relevant assessment year (unless condoned by the AO).

Key Takeaways

For disputes (e.g., dual claims), the Income Tax Department may require a declaration or court order.