New Income Tax Bill: No Refunds for Late ITR Filed After Due Date:

New Income Tax Bill: No Refunds for Late ITR Filed After Due Date Most experts have pointed out that the new income tax bill, which is to come into effect from FY 2026-27, says that taxpayers who fail to meet the deadline for filing ITR will not be entitled to a refund. This change is being widely debated by experts on social media. According to an advisor, "the new Income Tax Bill 2025 introduces a major change. Under Clause 263(1)(a)(ix), the taxpayers are required to submit their Income Tax Returns (ITR) within the due date to be eligible for a refund under Chapter XX." This is in contrast to the existing Income Tax Act of 1961, where taxpayers can still obtain refunds even if they file a delayed return by December 31 of the assessment year. "Clause 433 states that taxpayers can only claim a refund while filing their income tax return. This rule could be challenging for individuals who miss the deadline due to genuine reasons. Even if extra TDS has been deducted, they may lose the right to claim a refund if they file late." [caption id="attachment_366748" align="alignnone" width="1280"] Income Tax[/caption] Present rules under the I-T Act, 1961 According to the Income Tax Act, Section 237 provides the opportunity for the individual to claim a refund when he has paid excess tax. The taxpayer may submit his usual return by July 31 (in the case of individuals) or a belated return under Section 139(4) on or before December 31 of the assessment year. But taxpayers submitting late are subject to a penalty under Section 234(F) from Rs. 1,000 to Rs. 5,000, based on income. The Income Tax Department clarified that the rules for refunds will remain the same. They assured taxpayers that even if they file their returns late, they can still claim refunds. The requirement to apply for refunds under Section 239 will now be included in Clause 263(1)(ix) of the new bill, but the overall refund process will not change. Misunderstanding and Doubt There has been a growing misunderstanding about these rules. The current Income Tax Act does not stop taxpayers from claiming refunds just because their ITR is filed late. However, the new bill clearly states that no refunds can be claimed if the ITR is submitted after the deadline. Experts are debating whether this is a mistake or a deliberate change and whether it will be adjusted before the bill becomes law. Filing after the due date If a taxpayer misses the December 31 deadline to file a belated return, they will lose the chance to get a refund through the normal ITR filing process. They can ask for an exception under Section 119(2)(b) from the Principal Commissioner of Income Tax (Pr. CIT) or Commissioner of Income Tax (CIT). This request must be made in writing, and each case is considered individually. The taxpayer will need to provide a valid reason for the delay. The new Income Tax Bill 2025 keeps the same rules for claiming refunds. Taxpayers can still get refunds if they file their ITR after the due date. However, if they miss the belated return deadline (December 31), they can only request an exception. The refund rules remain unchanged.