Refund Where Income is Included in Other Person's Income

Section 432 — - REFUND WHERE INCOME IS INCLUDED IN OTHER PERSON'S INCOME

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, transferor under revocable transfer), only that other person can claim refund of TDS / advance tax pertaining to such income. Prevents double-claim across two assessees.

PRACTITIONER PLANNING NOTES

• In clubbing situations, ensure TDS / TCS reflected against correct PAN -- often deductor reports against income-earner's PAN; reassign via correction return.
• For minor's TDS where income clubbed with parent's, parent obtains refund via own ITR.

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).