1 month ago
16
Union Budget 2024, tabled by Finance Minister Nirmala Sitharaman on July 23, proposed to reduce the time-limit for which reassessment can be done and rationalisation of the provisions read more
 "Getting ready to file I-T returns? Union Budget 2024 says something about refunds")
Source: News18
The Union Budget 2024 has proposed to withhold income tax refund up to 60 days of assessment under section 245 if assessment proceedings of the taxpayer are pending for any earlier year.
Finance Minister Nirmala Sitharaman has proposed that under Section 245, if a taxpayer files a return claiming refund and assessment proceedings are pending for any earlier year, the income tax department can withhold the issue of refund till completion of pending assessment.
What does it mean?
If you are a taxpayer and if your are filing ITR (income tax return), the deadline for which is July 31, 2024, and claiming a refund but your assessment proceedings from any earlier year is pending, then as per the Union Budget 2024 proposal, the IT officer can withhold the refund till the earlier year’s assessment if they deem that the “interest of the revenue will be adversely affected”.
Now, this may also result in you losing out on interest paid for a delayed refund.
However, to do so, the IT officer will have to get approval from the Principal Chief Commissioner or Chief Commissioner under Section 275.
But why has this been done?
The Union Budget highlighted that the period of withholding the refund up to the date of assessment was found to be inadequate since any tax demand becomes due only 30 days from the close of the assessment or reassessment.
Therefore, it has been proposed in the Union Budget 2024 to extend the period of withholding the refund up to 60 days from date on which assessment/ reassessment of the earlier is made.
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
English (US) ·