Income Tax Act, 2025
Section 5: Ins. by s. 68, ibid. (w.e.f. 12017).
5. Ins. by s. 68, ibid. (w.e.f. 12017).
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Provided that no such adjustments shall be made unless an intimation is given to the assessee
of such adjustments either in writing or in electronic mode:
Provided further that the response received from the assessee, if any, shall be considered
before making any adjustment, and in a case where no response is received within thirty days of
the issue of such intimation, such adjustments shall be made;]
1[Provided also that no adjustment shall be made under sub-clause (vi) in relation to a return
furnished for the assessment year commencing on or after the 1st day of April, 2018;]
(b) the tax 2[, interest and fee], if any, shall be computed on the basis of the total income
computed under clause (a);
(c) the sum payable by, or the amount of refund due to, the assessee shall be determined after
adjustment of the tax 2[, interest and fee], if any, computed under clause (b) by any tax deducted at
source, any tax collected at source, any advance tax paid, any relief allowable under an agreement
under section 90 or section 90A, or any relief allowable under section 91, any rebate allowable under
Part A of Chapter VIII, any tax paid on self-assessment and any amount paid otherwise by way of tax
3[, interest or fee];
(d) an intimation shall be prepared or generated and sent to the assessee specifying the sum
determined to be payable by, or the amount of refund due to, the assessee under clause (c); and
(e) the amount of refund due to the assessee in pursuance of the determination under clause (c)
shall be granted to the assessee:
Provided that an intimation shall also be sent to the assessee in a case where the loss declared in
the return by the assessee is adjusted but no tax 3[, interest or fee] is payable by, or no refund is due
to, him:
Provided further that no intimation under this sub-section shall be sent after the expiry of one
year from the end of the financial year in which the return is made.
Explanation.—For the purposes of this sub-section,—
(a) “an incorrect claim apparent from any information in the return” shall mean a claim, on the
basis of an entry, in the return,—
(i) of an item, which is inconsistent with another entry of the same or some other item in such
return;
(ii) in respect of which the information required to be furnished under this Act to substantiate
such entry has not been so furnished; or
(iii) in respect of a deduction, where such deduction exceeds specified statutory limit which
may have been expressed as monetary amount or percentage or ratio or fraction;
(b) the acknowledgement of the return shall be deemed to be the intimation in a case where no
sum is payable by, or refundable to, the assessee under clause (c), and where no adjustment has been
made under clause (a).
(1A) For the purposes of processing of returns under sub-section (1), the Board may make a scheme
for centralised processing of returns with a view to expeditiously determining the tax payable by, or the
refund due to, the assessee as required under the said sub-section.
(1B) Save as otherwise expressly provided, for the purpose of giving effect to the scheme made under
sub-section (1A), the Central Government may, by notification in the Official Gazette, direct that any of
the provisions of this Act relating to processing of returns shall not apply or shall apply with such
exceptions, modifications and adaptations as may be specified in that notification; so, however, that no
direction shall be issued after 4[the 31st day of March, 2012].
in relation to a return
furnished for the assessment year commencing on or after the 1st day of April, 2018;]
the tax 2[, interest and fee], if any, shall be computed on the basis of the total income
computed under clause
the sum payable by, or the amount of refund due to, the assessee shall be determined after
adjustment of the tax 2[, interest and fee], if any, computed under clause
by any tax deducted at
source, any tax collected at source, any advance tax paid, any relief allowable under an agreement
under section 90 or section 90A, or any relief allowable under section 91, any rebate allowable under
Part A of Chapter VIII, any tax paid on self-assessment and any amount paid otherwise by way of tax
3[, interest or fee];
an intimation shall be prepared or generated and sent to the assessee specifying the sum
determined to be payable by, or the amount of refund due to, the assessee under clause
the amount of refund due to the assessee in pursuance of the determination under clause
shall be granted to the assessee:
Provided that an intimation shall also be sent to the assessee in a case where the loss declared in
the return by the assessee is adjusted but no tax 3[, interest or fee] is payable by, or no refund is due
to, him:
Provided further that no intimation under this sub-section shall be sent after the expiry of one
year from the end of the financial year in which the return is made.
Explanation.—For the purposes of this sub-section,—
“an incorrect claim apparent from any information in the return” shall mean a claim, on the
basis of an entry, in the return,—
of an item, which is inconsistent with another entry of the same or some other item in such
return;
in respect of which the information required to be furnished under this Act to substantiate
such entry has not been so furnished; or
in respect of a deduction, where such deduction exceeds specified statutory limit which
may have been expressed as monetary amount or percentage or ratio or fraction;
the acknowledgement of the return shall be deemed to be the intimation in a case where no
sum is payable by, or refundable to, the assessee under clause
For the purposes of processing of returns under sub-section
Save as otherwise expressly provided, for the purpose of giving effect to the scheme made under
sub-section