Six-Year Time Limit for Refund Applies Only to Tax Paid, Not to Payments on Exempt Income

Vivek Jalan | Last updated: 19 December 2025

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The six-year time limit for claiming a tax refund generally applies to tax that was actually paid. However, this limit may not apply to payments made on income that is exempt from tax, such as disability pensions. This distinction is important for individuals and organisations like Non-Profit Organisations and Trusts seeking refunds.

Section 237 of ITA'61 provides that - "237. If any person satisfies the 1[Assessing] Officer that the amount of tax paid by him or on his behalf or treated as paid by him or on his behalf for any assessment year exceeds the amount with which he is properly chargeable under this Act for that year, he shall be entitled to a refund of the excess." The same is mirrored by Section 431 of ITA'25, which provides that - "431. Refunds. If any person satisfies the Assessing Officer that the amount of ta

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1 Year PLAN

1999

(Excl. of GST ₹359)

BEST VALUE

2 Years PLAN

3499

(Excl. of GST ₹629)

3 Months PLAN

999

(Excl. of GST ₹179)

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About the Author

Vivek Jalan

DESIGNATED PARTNER

Mr. Vivek Jalan is a FCA, Qualified LL.M (Constitutional Law) and LL.B. He is the Chairman of The Fiscal Affairs and Taxation Committee of The Bengal Chamber of Commerce and Industry. He is the Convenor on Indirect Taxes of the CII- Economic Affairs and Taxation Committee (ER); He is also a visiting faculty for Indirec ... Read more

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