Income Tax Bill 2025: Refund Clause Conflict to Be Fixed
Why in the news
A senior Finance Ministry official said the government would fix a disputed refund rule in the draft Income Tax Bill, 2025, aligning it with present law. As drafted, late returns could lose refunds.
Key facts
- Introduced in Parliament on February 13, 2025.
- Experts called the inconsistency confusing and potentially unfair.
| Provision | Refund position |
|---|---|
| Section 433 | Allowed even if the return is belated |
| Section 263(1)(a)(ix) | Allowed only if filed on or before the due date |
Exam angle
- Issue: belated returns and refund eligibility.
- Fix: align with the current law.