ITR
Refund held because the return is under scrutiny
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Facts
When a return is picked for scrutiny, the refund may be kept until the assessment is done. The final refund or demand depends on the order.
Provisions and law
- Sec 143(2), Income-tax Act 1961 (now Sec 270(8), Income-tax Act 2025)Return selected for scrutiny.
- Sec 244A, Income-tax Act 1961 (now Sec 437, Income-tax Act 2025)Interest on refund at 0.5% for every month or part of a month, less periods of delay caused by the taxpayer.
Analysis
Respond to all notices to close the case sooner. Interest on refund continues as per the rules. After the order, the refund is issued if due. If the order is wrong, appeal.
Conclusion
- Check e-Proceedings for scrutiny notices.
- Reply on time.
- Track refund after the order.
- Appeal if needed.
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