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:
- Advance tax
- Tax Deducted at Source (TDS)
- Self-assessment tax
- Regular assessment tax.
2. Legal Representatives or Successors
- If the original taxpayer is deceased, insolvent, or incapacitated, the refund can be claimed by:
- Legal heirs(with succession certificate or will).
- Trustees, guardians, or receiversacting on behalf of the taxpayer.
3. Persons in Whose Income is Clubbed
- If income is clubbedunder another person’s return (e.g., spouse’s income under Section 64), the person in whose income it was included can claim the refund.
4. Employers in Fringe Benefit Cases
- If fringe benefits provided by one employer are included in another employer’s tax filings, the latter employeris entitled to the refund.
Exceptions (Who Cannot Claim a Refund)
- A person who did not bear the tax burden(e.g., a company cannot claim refunds for TDS deducted from employees’ salaries).
- If the tax return was filed after the due date, the refund claim may be invalid unless condoned under Section 119(2)(b).
Key Conditions for Refund [Section 237]
- The taxpayer must prove that the tax paid exceeds the actual liability.
- The refund claim must be filed within the prescribed time limit(generally 1 year from the end of the relevant assessment year).
- Supporting documents (e.g., ITR, TDS certificates, proof of payment) must be submitted.
For automatic refunds (e.g., from appellate orders), no separate claim is needed—the Assessing Officer processes it directly
