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Feb 18, 2025
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No refund for late ITR filings under new income tax bill? I-T Department issues this clarification
One of the primary concerns generated by the release of the new Income Tax Bill 2025 is whether late filers will be entitled to refunds when filing their Income Tax Return (ITR) beyond the deadline. The bill, slated to be implemented from FY2026-27, contains provisions that have created uncertainty regarding the entitlement of late filers to refunds.
Major provisions in the new bill
Clause 263(1)(a)(ix) of the new bill has been criticized by experts, which says that those who are claiming refunds should file their ITR within the stipulated due date. This is different from the existing Income Tax Act, 1961, where taxpayers can claim refunds even if they submit a delayed return by December 31 of the assessment year.
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