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Feb 17, 2025
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I-T Bill creates ambiguities in eligibility for claiming refunds
The new Income Tax Bill, 2025 contains some provisions which have created ambiguity regarding the eligibility for claiming tax refunds.
To be specific, clause (ix) under ‘Section 263(1)(a)’ of the new Bill mandates that a taxpayer who intends to claim a refund, is required to file their Income Tax Return (ITR) within the “due date” (the date of the financial year immediately succeeding the relevant “tax year”).
However, ‘Chapter XX’ of the new Bill dealing with refunds provides for interest on refunds even in cases where returns are filed “outside of the due dates”.
There is also no restriction placed on claiming a refund in a revised or belated tax return, unlike in the case of an updated return, in the new Bill, say experts.
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