§ 434
Chapter XX — Refunds
Refund for denying liability to deduct tax in certain cases
Income-tax Act, 2025
If an agreement states that the payer of income must bear the tax, but the payer later pays the tax and claims that no deduction was required, they can apply for a refund within 30 days of payment.
The assessing officer must decide the application in writing, cannot reject it without hearing the applicant, and must issue the order within six months of receiving the application.
📜 Official text of the section +
434. (1) Where,—
( a) under an agreement or other arrangement, in writing, the tax deductible
on any income, other than interest in section 393(2) (Table: Sl. No. 17),
is to be borne by the person by whom the income is payable; and
( b) such person having paid such tax to the credit of the Central Government
claims that no tax was required to be deducted on such income,
he may, within thirty days from the date of payment of such tax, file an application
before the Assessing Officer for refund of such tax in such form and such manner,
as may be prescribed.
(2) The Assessing Officer shall, by an order in writing, allow or reject the application
as referred to in sub-section (1).
(3) No application under sub-section (1) shall be rejected unless an opportunity of
being heard has been given to the applicant.
(4) The Assessing Officer may, before passing an order under sub-section (2), make
such inquiry as he considers necessary.
(5) The order under sub-section (2) shall be passed within six months from the end
of the month in which application under sub-section (1) is received.
Refund on appeal, etc.
Plain-language summary — not the official text. Refer to the bare Act and confirm with a professional for your specific case.