New Delhi, Aug 12
The new Income Tax Bill, 2025, passed by the Lok Sabha, clarifies that late-return filers are eligible for refunds on excess taxes deducted in a financial year.
Analysts said on Tuesday that the bill was missing the proposal to eliminate the requirement for small taxpayers to file returns just to claim tax refunds.
The new I-T Bill kept section 433 intact, which required that ‘every claim for refund under this part shall be made by furnishing a return as per section 263’. So, effectively, the law still requires a return of income to claim a refund, with no alternative methods allowed.
Taxpayers who file late or revised returns after the due date will still be eligible for refunds, the new bill suggested.
Small taxpayers, including senior citizens, must file returns solely to claim a refund for excess taxes deducted at source (TDS), even if their income is below the basic exemption threshold.