Refunds
[Section-431 as per the Income Tax Act, 2025 (this Act) w.e.f. 1st April, 2026.]
If any person satisfies the Assessing Officer that the amount of tax paid by him or on his behalf or treated as paid by him or on his behalf for any tax year exceeds the amount with which he is properly chargeable under this Act for that year, he shall be entitled to a refund of the excess.
FAQs on Section 431 of Income Tax Act 2025
What does Section 431 of the Income Tax Act, 2025 deal with?
Section 431 deals with the entitlement of a taxpayer to claim a refund when the tax paid by or on behalf of a person exceeds the amount for which they are properly chargeable under the Act for a particular tax year.
Who is eligible to claim a refund under Section 431?
Any person who has paid tax or on whose behalf tax has been paid or treated as paid, and the amount so paid exceeds the proper tax liability for the tax year, is eligible to claim a refund.
What must a person do to receive a refund under Section 431?
The person must satisfy the Assessing Officer that the tax paid exceeds the actual amount properly chargeable under the Act for that tax year.
Does the refund apply only to direct tax payments by the taxpayer?
No, it applies to all tax payments whether made directly by the person, on their behalf, or treated as paid on their behalf.
What is meant by “treated as paid” in Section 431?
“Treat as paid” generally refers to situations like TDS (Tax Deducted at Source), TCS (Tax Collected at Source), advance tax, or self-assessment tax that is credited to the taxpayer’s account under the Act.
Is there a time limit to claim the refund under Section 431?
Section 431 itself does not prescribe a time limit, but the procedural aspects for claiming refunds, including time limits, are governed by other provisions of the Act or related rules.
Can the refund under Section 431 be adjusted against outstanding dues?
While Section 431 grants entitlement to refund, whether it can be adjusted against other dues is handled under separate provisions related to tax recovery and adjustment.
Is interest paid on refunds granted under Section 431?
Section 431 does not cover interest on refunds. Interest on refunds is governed by separate sections of the Act.
What if the Assessing Officer disagrees with the refund claim?
If the Assessing Officer is not satisfied, the refund may be denied or reduced, and the taxpayer may appeal or seek redressal under applicable procedures.
Can a refund be claimed for tax paid in previous years?
The refund is available for the tax year in question if the claim is made in accordance with the timelines and procedures prescribed under the Act. Other provisions govern belated claims.
Does a taxpayer need to file a return to claim a refund under Section 431?
Yes, typically a refund claim must be made through a valid return of income filed for the relevant tax year unless exempted under any special provisions.
Is the refund granted automatically once excess tax is detected?
No, the taxpayer must satisfy the Assessing Officer, and the refund is granted only after due verification.
Refresh Page