Income Tax Refund

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Anshuman Bardhan (Querist)
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28 December 2007 In case of a individual who does not have taxable income, but who has refund arising out of TDS in FY 2005-06. He has not filed his return claiming refund during the AY 2006-07. Can he claim refund in AY 2007-08. What would be the case if the assessee is a firm, society or a company. Please also detail the penalties possible.

CA. Vineet Grover

CA. Vineet Grover (Expert)
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29 December 2007 Hi Anshuman,

Refund arises when the tax deposited in the form of self assessment tax / advance tax / TDS exceeds the tax liability.
The department shall only award refund only when it is claimed.
There is a matching concept. TDS claim shall be allowed against income. So refund can ce claimed only in the year in which the income has accrued.
You have to file return for the A Y 2006-07 to claim refund. Further you will not be given the benefit of refund if the same is claimed in the subsequent years.
This stands for all assessees.

Rgds/
Vineet