Section 438 — Set off and withholding of refunds in certain cases
Old Act equivalent: Section 245 of IT Act 1961 Sub-part: Chapter XX—Refunds
Statutory Text
- (1) Where a refund becomes due or is found to be due to any person under this Act, the Assessing Officer or Commissioner or Principal Commis sioner or Chief Commissioner or Principal Chief Commissioner, as the case may be, may in lieu of payment of the refund, set off the amount to be refunded or any part of that amount, against the sum, if any, remaining payable under [the Income-tax Act, 1961 (43 of 1961), or] this Act by such person. (2) Any action under sub-section (1) shall be taken after giving an intimation in writing to such person of the action proposed to be taken. (3) Where,––
(a) a part of the refund is set off under sub-section (1); or
(b) no such amount as referred to in clause (a) is set off, and refund becomes due to a person, and the Assessing Officer, having regard to the fact that proceedings for assessment or reassessment are pending in the case of such person, may, for reasons to be recorded in writing and with the previous approval of the Principal Commissioner or the Commissioner, withhold the refund up to sixty days from the date on which such assessment or reassessment is made. CHAPTER XXI PENALTIES Penalty for under-reporting and misreporting of income.
Provisos
None.
Explanations
None.
Tables
None.
Key Structure
- Applies to: Assessees entitled to refund who also have outstanding tax demands.
- Conditions: AO may set off refund against any tax, interest, penalty, fee remaining payable; may withhold refund during pending assessment/reassessment with PCIT/CIT approval.
- Time limits: Withholding up to 60 days from date of assessment/reassessment.
- Monetary limits: Amount of outstanding demand; entire refund may be withheld.
- Exceptions: Withholding requires prior approval of PCIT/CIT; reasons to be recorded.
Cross-References
None identified.
Amendment Notes
None noted from the extracted pages.