Context:
In a major relief for taxpayers, the government is likely to amend the controversial refund provision in the draft Income Tax (IT) Bill, 2025, which currently denies refunds for returns filed after the due date. A senior official from the Finance Ministry has confirmed that the provision will be rectified and brought in line with the current law.
Contradictory Clauses in the Draft Law
The draft Bill, introduced in Parliament on February 13, 2025, contains contradictory sections:
- Section 433 allows a refund claim regardless of whether the return is belated.
- In contrast, Section 263(1)(a)(ix) stipulates that a refund can be claimed only if the return is filed on or before the due date.
Tax experts and stakeholders flagged this inconsistency, calling it confusing and potentially unfair.
BS
