A Study Of Unlawful Illegal Refund Adjustment Under Section 245 Of Income Tax Act By The Tax Authorities And The Appealing And Refund Procedure Of The Income Tax Authorities
Rakshit Patni, Amity Law School, Noida, Amity University, Uttar Pradesh
INTRODUCTION
The economy as well as the strength of a country's currency are the most essential aspects of that country. The global economy has exploded as time has passed and people's income capacities has gone up. Even though the profits have risen, the human nature of greed is eroding the government's only source of revenue by avoiding the requirement of contributing a portion of their earnings to the society's development and advancement. Taxation is an important aspect of any economy. The government relies on tax payments to fund numerous development projects in the country as well as pay off its debt. However, due to high tax rates, a large portion of the populace has resorted to dodging or neglecting their obligations. To avoid such tactics, the government continues to introduce new programmes and lower tax rates. The anxiety of paying taxes incorrectly is always present in the thoughts of a tax payer. The government has gone to great lengths to make tax calculations as straightforward and precise as possible. Even though achieving tax precision is a difficult path, the government has long practised tax refunds in the event of extra or wrong payments. This practise of IT returns is one thing that improves tax payer confidence, but the current situation has many doubting the system of refunds owing to frequent denial of refund claims and a lengthy process for collecting the refund amount.
At the end of each assessment year, every Indian citizen is required to file income tax returns. The Income Tax Act, Section 139, establishes the requirement for a person to file a return of income. The return of income is based on the determination that a person's total income during the previous year exceeded the amount of income not subject to income tax, in which case the excess may be taxable under the law provided in the act.
In Chapter 19 of the Income Tax Act of 1961, “there are specific provisions that define the nomenclature for income tax refunds. If a person proves to the Assessing Officer that the amount of tax paid by him or on his behalf, or treated as paid by him or on his behalf, for any assessment year exceeds the amount with which he is properly chargeable under this Act for that year, he is entitled to a refund of the excess amount paid,” according to Section 237 of the Act.
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