Refunds -- General Eligibility

Section 431 — - REFUNDS -- GENERAL ELIGIBILITY

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 exceeds his actual liability, AO is required to refund the excess. The pre-condition is satisfaction of AO -- standard accommodated through the regular assessment process and intimation under s. 143(1) [s. 270 of 2025].

NATURE OF RIGHT

Refund is an enforceable statutory right, not a discretionary concession. Once tax in excess has been collected, refund must follow.

PRACTITIONER PLANNING NOTES

• Refund triggered automatically on processing of return where intimation u/s 270 [143(1)] shows refund.
• Refund credited to bank account pre-validated on Income Tax Portal -- ensure account active and PAN-linked.
• Refund cannot be denied without speaking order; dispute via s. 357 (CIT(A)).

CROSS-REFERENCES

• s. 263 (filing of return).
• s. 270 [143(1)] (intimation).
• s. 245 (set-off of refund against demand).
• s. 119(2)(b) (condonation of delay).