Income Tax Act, 2025
Section 6: Ins. by Act 28 of 2016, s. 92 (w.e.f. 12016).
6. Ins. by Act 28 of 2016, s. 92 (w.e.f. 12016).
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1[(1B) Where refund of anyamount becomes due to the deductor in respect of any amount paid to the
credit of the Central Government under Chapter XVII-B, such deductor shall be entitled to receive, in
addition to the said amount, simple interest thereon calculated at the rate of one-half per cent for every
month or part of a month comprised in the period, from the date on which—
(a) claim for refund is made in the prescribed form; or
(b) tax is paid, where refundarises on account of giving effect to an order under section
250 or section 254 or section 260 or section 262,
to the date on which the refund is granted.]
(2) If the proceedings resulting in the refund are delayed for reasons attributable to the assessee 1[or
the deductor, as the case may be,] whether wholly or in part, the period of the delay so attributable to him
shall be excluded from the period for which interest is payable 2[under sub-section (1) or (1A)] 1[or (1B)],
and where any question arises as to the period to be excluded, it shall be decided by the 3[Principal Chief
Commissioner or Chief Commissioner] or 4[Principal Commissioner or Commissioner] whose decision
thereon shall be final.
(3) Where, as a 5[result of an order under sub-section (3) of section 115WE or
section 115WF or section 115WG or] 6[sub-section (3) of section 143 or section 144 or] section 147 or
section 154 or section 155 or section 250 or section 254 or section 260 or section 262 or section
263 or section 264 or an order of the Settlement Commission under sub-section (4) of section 245D, the
amount on which interest was payable under sub-section (1) has been increased or reduced, as the case
may be, the interest shall be increased or reduced accordingly, and in a case where the interest is reduced,
the Assessing Officer shall serve on the assessee a notice of demand in the prescribed form specifying the
amount of the excess interest paid and requiring him to pay such amount; and such notice of demand shall
be deemed to be a notice under section 156 and the provisions of this Act shall apply accordingly.
(4) The provisions of this section shall apply in respect of assessments for the assessment year
commencing on the 1st day of April, 1989, and subsequent assessment years:]
7[Provided that in respect of assessment of fringe benefits, the provisions of this sub-section shall
have effect as if for the figures “1989”, the figures “2006” had been substituted.]
245. Set off of refunds against tax remaining payable.—Where under any of the provisions of this
Act, a refund is found to be due to any person, the 8[Assessing Officer], 9[Deputy Commissioner
(Appeals)] 10[, or the Commissioner (Appeals) or Commissioner or 11[3[Principal Chief Commissioner or
Chief Commissioner] or 4[Principal Commissioner or 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 this Act by the person to whom the refund is due, after giving an intimation
in writing to such person of the action proposed to be taken under this section.
Where refund of anyamount becomes due to the deductor in respect of any amount paid to the
credit of the Central Government under Chapter XVII-B, such deductor shall be entitled to receive, in
addition to the said amount, simple interest thereon calculated at the rate of one-half per cent for every
month or part of a month comprised in the period, from the date on which—
claim for refund is made in the prescribed form; or
tax is paid, where refundarises on account of giving effect to an order under section
250 or section 254 or section 260 or section 262,
to the date on which the refund is granted.]
If the proceedings resulting in the refund are delayed for reasons attributable to the assessee 1[or
the deductor, as the case may be,] whether wholly or in part, the period of the delay so attributable to him
shall be excluded from the period for which interest is payable 2[under sub-section
or
Where, as a 5[result of an order under sub-section
of section 115WE or
section 115WF or section 115WG or] 6[sub-section
of section 143 or section 144 or] section 147 or
section 154 or section 155 or section 250 or section 254 or section 260 or section 262 or section
263 or section 264 or an order of the Settlement Commission under sub-section
of section 245D, the
amount on which interest was payable under sub-section
has been increased or reduced, as the case
may be, the interest shall be increased or reduced accordingly, and in a case where the interest is reduced,
the Assessing Officer shall serve on the assessee a notice of demand in the prescribed form specifying the
amount of the excess interest paid and requiring him to pay such amount; and such notice of demand shall
be deemed to be a notice under section 156 and the provisions of this Act shall apply accordingly.
The provisions of this section shall apply in respect of assessments for the assessment year
commencing on the 1st day of April, 1989, and subsequent assessment years:]
7[Provided that in respect of assessment of fringe benefits, the provisions of this sub-section shall
have effect as if for the figures “1989”, the figures “2006” had been substituted.]
245. Set off of refunds against tax remaining payable.—Where under any of the provisions of this
Act, a refund is found to be due to any person, the 8[Assessing Officer], 9[Deputy Commissioner
or Commissioner or 11[3[Principal Chief Commissioner or
Chief Commissioner] or 4[Principal Commissioner or 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 this Act by the person to whom the refund is due, after giving an intimation
in writing to such person of the action proposed to be taken under this section.