New Income Tax Bill: Under new income tax bill, taxpayers who file ITR late will also be able to claim refund

Under the new Income Tax Bill passed in the Lok Sabha, taxpayers who file ITR late can also claim refund of the extra tax deducted.

New Income Tax Bill: Under the new Income Tax Bill passed in the Lok Sabha, taxpayers who submit ITR late can also claim a refund of the extra tax deducted. Analysts said on Tuesday that the new Income Tax does not propose to eliminate the requirement of filing returns for small taxpayers only to claim tax refund.

Section 433 retained in the new Income Tax Bill

This means that small taxpayers will also have to submit ITR to get tax refund. Section 433 has been retained in the new Income Tax Bill, according to which ‘every claim for refund can be made only by submitting a return under section 263. Under the new Income Tax Bill, taxpayers who submit or revise ITR after the last date will also be eligible for refund.

Small taxpayers, including senior citizens, will have to file returns only to claim refund of Tax Deducted at Source (TDS), even if their income is below the basic exemption limit. The parliamentary committee had recommended that taxpayers should not be forced to file returns only to avoid penalties.

Preeti Sharma, Partner, Global Employer Services, Tax and Regulatory Services at BDO India, said, “The biggest advantage of the new law is that the common man can easily understand it with less effort compared to the old law. The amended bill incorporates most of the changes suggested by the Select Committee. Taxpayers will still have to go through the process of assessing the correct regime while filing tax returns. Similarly, no change is proposed in the tax rates introduced in Budget 2025. The new bill was passed incorporating the recommendations of the 31-member parliamentary committee led by BJP MP Baijayant Panda. IANS

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