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Claiming refund where there is no taxable income

There is some confusion as to the understanding of the income-tax law on the part of the reader. Refund can be claimed only in the year to which it relates to. Even if there is no taxable income, there is no objection to the claim for refund by making a return of non-taxable income along with refund application in Form No.30. A refund can be claimed within one year from the last date of the assessment year and not necessarily within the time required for filing voluntary return under Sec. 139(1) applicable for taxable returns. Delayed applications are also entertained under powers of the authorities delegated by the CBDT.

The inference that incentives such as contribution by way of insurance premia are available only to a person, who files returns is not correct. Taxable income is determined after all the deductions to which the taxpayer is entitled.

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Claiming refund where there is no taxable income

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