Income Tax refund

According to Income Tax Act,1961 any assessee paid or Tax Deducted at source excess on actual Income Tax Due during the relevant assessment year can claim income tax refund.

Who can claim refund ?

An assessee has filed any return of income and any rfund of tax is due such refund shall be granted by the assessing Officer within prescribed time. If any refund arises due to an order of revision,appeal,rectification by  commissioner of income tax or appeal to the Higher court the refund shall be granted by the assessing officer.

Who is entitled to refund  ?  section 237

If Assessing Officer satisfies with informaton filed in income tax return than the amount of tax paid by him or TDS deducted or on his behalf  or treated as paid by him or on his behalf for any assessment year exceeds the amount which he is chargeable under the income tax act for that year he shall be entitled refund.

can a person other than the assessee claim refund ?  section 238

Although only the assessee is entitled to calim refund, however in the following cases the refund can be claimed by a person other than the assessee.

1. In case of assessee death,incapacity, liquidation, insolvency,  or other case, a person is unable to claim or receive any refund due to him,his legal representive.

2.In case of the income on one person is included under any provision of the income tax act in the total income of any other person the latter alone shall be entitled to a refund in respect of such income.

Form  to claim refund  section 239

An assessee should filed his return of income on or before the end of relevant assessment year.

If assessee fail to file his return of income than he/she/it will have to get the delay condoned as per section 119(2) (b).

Mean assessee should contacts with his areas assessing officer personally .

Refund on appeal etc  section 240

where as a result of any order passed in appeal or other proceeding  under  this Act refund of any amount become due  of an assessee the assessing officer shall refund the amount.

provided the order aforesaid

1. An assessment is set aside or cancelled and order of fresh assement is directed to be made the refund if any shall become due only on the making of suh fresh assessment.

2.The assessment is annulled , the refund shall become due only of the amount excess paid.

Withholding of refund in certain cases section 241A

Where refund of any amountbecome due to the assessee under the  section 143(1) and the  Assessing officer is of theopinion having regard to the fact that a notice has beenissued under section 143(2)) in respct of such return that the grant of the refund is likely to adversely  affect the revenue.

 Set off of refund against tax/demand outstanding section 245

As per provision of Income Tax Act,1961 a refund is foun to be due to any assessee the assessing officer, commissioner(appeals), chief commissioner as the case may be in lieu of payment of the refund set of the amount to be refunded or any part of that amount against the sum if any remaining payable under the income Tax Act.