Section 245 of Income Tax Act for AY 2023-24

Section 245 of Income Tax Act 1961 amended by Finance Act 2022 and Income-tax Rules, 1962. Set off of refunds against tax remaining payable.

Amended and updated notes on section 245 of Income Tax Act 1961 as amended by the Finance Act 2022 and Income-tax Rules, 1962. Detail discussion on provisions and rules related to Set off of refunds against tax remaining payable.

Chapter XIX (Sections 237 to 245) of the Income Tax Act 1961 deals with the provisions related to refunds. Section 245 of IT Act 1961 provides for Set off of refunds against tax remaining payable.

Recently, we have discussed in detail section 244A (Interest on refunds) of IT Act 1961. Today, we learn the provisions of section 245 of Income-tax Act 1961. The amended provision of section 245 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 245 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-245: Set off of refunds against tax remaining payable

Where under any of the provisions of this Act, a refund is found to be due to any person, the Assessing Officer, Deputy Commissioner (Appeals), Commissioner (Appeals) or Principal Chief Commissioner or Chief Commissioner or Principal Commissioner or Commissioner, as the case may be, may, in lieu of payment of the refund, set off the amount to be refunded or any part of that amount, against the sum, if any, remaining payable under this Act by the person to whom the refund is due, after giving an intimation in writing to such person of the action proposed to be taken under this section.


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