Section 239A of Income Tax Act for AY 2023-24

Provisions and rules related to section 239A of Income Tax Act. Refund for denying liability to deduct tax in certain cases.

Amended and updated notes on section 239A of Income Tax Act 1961 newly inserted by the Finance Act 2022 and Income-tax Rules, 1962. Detail discussion on provisions and rules related to refund for denying liability to deduct tax in certain cases.

Chapter XIX (Sections 237 to 245) of the Income Tax Act 1961 deals with the provisions related to refunds. Section 239A of IT Act 1961 provides for refund for denying liability to deduct tax in certain cases.

Recently, we have discussed in detail section 239 (Form of claim for refund and limitation) of IT Act 1961.

Today, we learn the provisions of section 239A of Income-tax Act 1961 as amended by the Finance Act 2022. The amended provision of section 239A is effective for financial year 2022-23 relevant to the assessment year 2023-24.

In this article, you will learn detail of the provisions of section 239A of the Income Tax Act, 1961 Bare Act read with the Income-tax Rules, 1962 as provided by Ministry of Law and Justice, Government of India.

Section-239A: Refund for denying liability to deduct tax in certain cases

[Section 239A newly inserted w.e.f. 1-April-2022 by the Finance Act 2022]

Section 239A (1):

Where under an agreement or other arrangement, in writing, the tax deductible on any income, other than interest, under section 195 is to be borne by the person by whom the income is payable, and such person having paid such tax to the credit of the Central Government claims that no tax was required to be deducted on such income, may, within a period of thirty days from the date of payment of such tax, file an application before the Assessing Officer for refund of such tax in such form and such manner as may be prescribed.

Section 239A (2):

The Assessing Officer shall, by an order in writing, allow or reject the application:

Provided that no application under sub-section (1) shall be rejected unless an opportunity of being heard has been given to the applicant.

Section 239A (3):

The Assessing Officer may, before passing an order under sub-section (2),
make such inquiry as he considers necessary.

Section 239A (4):

The order under sub-section (2) shall be passed within six months from the end of the month in which application under sub-section (1) is received.


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