Chapter XX

Section 431 of the Income-tax Act, 2025 corresponds to s. 237 of the Income-tax Act, 1961. STATUTORY ARCHITECTURE Section 431 is the entitlement-to-refund provision. Where a person has paid (or has had paid on his behalf) tax which…

Section 432 of the Income-tax Act, 2025 corresponds to s. 238 of the Income-tax Act, 1961. STATUTORY ARCHITECTURE Where income is clubbed under Chapter VI [ s. 96 -100 of 2025] in another person's hands (e.g. spouse, minor child,…

Section 433 of the Income-tax Act, 2025 corresponds to s. 239 of the Income-tax Act, 1961. STATUTORY ARCHITECTURE Refund claim via filing return under s. 263 [ s. 139 of 1961]. The 1961 framework permitted Form 30 separately; the 2025…

Section 434 of the Income-tax Act, 2025 corresponds to s. 239 A of the Income-tax Act, 1961. STATUTORY ARCHITECTURE FA 2022 provision (effective 1-4-2022). Where deductor, having borne TDS under contractual arrangement (net-of-tax),…

Section 435 of the Income-tax Act, 2025 corresponds to s. 240 of the Income-tax Act, 1961. STATUTORY ARCHITECTURE Where any order in appeal / revision / other proceeding results in refund, AO must give effect within prescribed time (3…

Section 436 of the Income-tax Act, 2025 corresponds to s. 242 of the Income-tax Act, 1961. STATUTORY ARCHITECTURE Refund proceedings cannot be used to re-litigate finality of assessment. Assessment becomes final after appellate process /…

Section 437 of the Income-tax Act, 2025 corresponds to s. 244 A of the Income-tax Act, 1961. STATUTORY ARCHITECTURE Simple interest at 0.5% per month (or part of month) on refund. Period: from date of payment of tax / date of intimation…

Section 438 of the Income-tax Act, 2025 corresponds substantively to sections 245 (set-off of refund against demand) and 241A (withholding of refund pending assessment) of the Income-tax Act, 1961. It empowers AO to (a) set off any refund…