Person entitled to claim refund in certain special cases
[Section-432 as per the Income Tax Act, 2025 (this Act) w.e.f. 1st April, 2026.]
Section 432(1) of Income Tax Act 2025
432(1) Where the income of one person is included in total income of any another person under any provision of this Act, the latter shall be eligible for a refund under this Part in respect of such income.
Section 432(2) of Income Tax Act 2025
432(2) Where a person is unable to claim or receive a refund due to him on account of death, incapacity, insolvency, liquidation or other cause, his legal representative or the trustee or guardian or receiver, shall be entitled to claim or receive such refund for the benefit of such person or his estate.
FAQs on Section 432 of Income Tax Act 2025
Who is entitled to claim a refund when one person’s income is included in another person’s total income?
The person in whose total income the other person’s income is included is entitled to claim a refund in respect of such income.
What is the purpose of Section 432(1) of the Income Tax Act, 2025?
Section 432(1) allows the person who is taxed on someone else’s income to claim a refund related to that income, ensuring fairness in taxation.
Can a legal representative claim a refund if the original taxpayer has passed away?
Yes, a legal representative can claim or receive the refund due to the deceased person under Section 432(2).
Who can claim a refund on behalf of an incapacitated or insolvent person?
A trustee, guardian, or receiver can claim or receive the refund for the benefit of such person or their estate.
What happens if the person entitled to a refund is under liquidation?
In such a case, the liquidator or other authorized person may claim the refund under Section 432(2).
Does the Act permit a guardian to claim a refund for a minor or incapacitated person?
Yes, a guardian can claim or receive the refund on behalf of such a person.
Can multiple persons be eligible to claim the same refund under this provision?
No, the refund can only be claimed by the person who has been assessed on another’s income or by the legal representative or appropriate authority in cases like death or incapacity.
Is documentation required to prove entitlement in special cases like death or insolvency?
Yes, appropriate legal documents must be furnished to establish the authority to claim the refund.
Can a trustee of an estate file for a refund related to a deceased person’s income?
Yes, under Section 432(2), a trustee is entitled to claim the refund for the benefit of the deceased or their estate.
Does Section 432 apply automatically, or is an application necessary?
An application must be filed with the tax authorities to claim the refund, supported by necessary documentation.
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