Income Tax dept trims timeframe for taxmen to decide on refund adjustment
- Section 245 of the Income Tax Act enables the assessing officer (AO) to adjust the refund (or a part of the refund) against any tax demand that is outstanding from the taxpayer.
To help avoid litigation, the Income Tax department has trimmed the timeframe required for tax officers to decide on adjustment of refunds against outstanding tax dues to now 21 days from the earlier 30 days. According to the Directorate of Income Tax (Systems) notice, if the assessee either does not agree or partially agrees to adjustment, then the matter will be referred by CPC immediately to the assessing officer who then will provide feedback as to whether the adjustment should be made or not within 21 days from the date of the reference.
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