Is ITR filing before due date mandatory for income-tax refund in new bill? Tax Dept replies

The Income Tax Department has clarified there is no change in the provisions related to income-tax refunds in the new Income-Tax Bill 2025.

The official X handle of the tax department issued the above clarification on Tuesday, February 18, 2025, in response to a user's query about the ambiguity related to tax refunds in the new bill.

What the X user said

Based on his reading of section 433 along with section 263 (1)(a)(ix) of the new bill, a user named CA Puneet Goyal said income-tax refunds can be claimed only if the income-tax return (ITR) is filed before the due date.

"Another Anomaly under the New Income Tax Bill, after Combined reading of Sec 263(1)(a)(ix) along with sec433, refund can be claimed if return of income is filed before the due date. In other words, we can't claim refunds under belated return," Goyal wrote.

What the Income Tax Department said

The tax department clarified that there are no policy changes in the new income-tax bill. Additionally, the provisions related to tax refunds remain unchanged in the new bill.

"While we appreciate feedback and have shared ahead your inputs regarding the perceived ambiguity in r/o the specific issue in question, please note that under the Income-tax Act, 1961, individuals claiming a refund under Chapter XIX, are required to file a return of income under Section 239. This requirement will now be incorporated u/s 263(1)(ix) of the Bill. The other provisions related to the issuance of refunds remain unchanged," the tax department said.

"The returns of income filed under u/s 263 or in response to a notice u/s 268(1) will be processed u/s 270, determining any sum payable or refund due which will be granted u/s 270(1)(e). If refund is claimed in an invalid return, relief may be available under Section 239 of the Income Tax Bill (corresponding to s. 119 of the I-T Act, 1961). Thus, there is no change in the refund-related provisions in the Bill. We hope this addresses your concerns," it added.

Earlier, the tax department released FAQs saying there was no change in policy related to refunds. "All the rights and duties of taxpayers will continue to remain intact. The taxpayer will get his due refund in accordance with law.”

What is the ITR filing due date?

The ITR filing due date is the date by which a taxpayer can file his ITR without paying any penalty. For individuals, whose accounts don't need to be audited, the due date of filing ITR for FY 2024-25 is July 31, 2025.