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CS Executive · Tax Laws and Practice · Procedural Compliance under Income Tax

Under the Income-tax Act, 2025, before the Assessing Officer sets off a refund due to Mr. Raman against tax remaining payable by him, what must be done?

The authority must give Mr. Raman a written intimation of the proposed set off before acting. Section 438(2) makes this a precondition to setting off the refund against any sum remaining payable by him under the Act or the 1961 Act.

  1. APrior approval of the Central Board must be obtained
  2. BA written intimation of the proposed action must be given to Mr. RamanCorrect
  3. CA hearing before the Tribunal must be held
  4. DNothing, as set off is automatic without any notice

Explanation

Section 438(2) requires that any set off action be taken after giving a written intimation to the person of the action proposed. No Board approval or Tribunal hearing is prescribed, and set off is not permitted without intimation.

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