ITR

Refund held because the return is under scrutiny

Updated . Every paid answer is checked by a CA. Free AI answers are labelled until a CA verifies them.

Find

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

Sec 143(2), Income-tax Act 1961 (now Sec 270(8), Income-tax Act 2025); Sec 244A, Income-tax Act 1961 (now Sec 437, Income-tax Act 2025)

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.

Close

  1. Check e-Proceedings for scrutiny notices.
  2. Reply on time.
  3. Track refund after the order.
  4. Appeal if needed.

Connect now

A Savvy replies in minutes.

Fixed price before you pay. Your Savvy is paid only after you accept the work.

General guidance from TaxSavvy’s library of money processes. Laws change; your Savvy confirms the answer on your exact case before anything is filed.