Section 113 : Tax refund and adjustment of amount

1) If any person has paid tax exceeding the tax liability payable by him/her, the Department may give direction to subtract the excess amount of tax paid by him/her from the amount of tax payable by him pursuant to this Act. The Department has to refund the excess amount to be set by such subtraction to the concerned person.

2) If the tax in question is not to be paid along with the interest paid by any person pursuant to Section 119, the Department has to refund such interest to that person.

3) If any person makes an application to the Department, as prescribed, for the refund of the amount pursuant to sub-section (1), the Department shall refund such amount within sixty days of the date on which the application was made.

4) The person who makes an application pursuant to sub-section (3) has to make such application within two years from the latest date out of the following dates. In cases where an application is not made within that time limit, the amount referred to in sub-section (1) shall not be refunded:-

a) The date of expiration of the income year existed by virtue of payment of the excess amount,

b) The date on which the excess amount is paid, or

c) The date on which the case is decided.

5) The Department has to give a notice in writing of the decision made by it on the application made pursuant to sub-section (3).

6) When refunding any amount of tax by the Department to any person by virtue of the order of a court or any other reason, the Department has to pay to such a person the interest as per the normal rate for the following period:

a) In cases where such tax refund is related to the excess tax adjustment available to any person in any income year pursuant to Sections 93, 94 or 100, the period between the due date for submission of the tax return pursuant to Section 96 and the date of tax refund, and

b) In any other cases, the period between the date of payment by such person of the refundable tax and the date of tax refund.

7) Tax deduction that can be claimed pursuant to Section 51 or 71 shall not be adjusted in any year, and such tax deduction shall not be adjusted in amounts or refunded pursuant to this sub-section.

Provided that the tax deduction adjustment may be made in accordance with the provisions contained in sub-section (2) of Section 4, sub-section (4) of Section 51 and sub-section (3) of Section 71.