Section 432

Section 432: person entitled to claim refund in certain special cases

Section 432 clarifies who can claim a refund in two special situations: where one person's income is clubbed into another's total income, and where the person actually entitled to a refund cannot claim or receive it himself because of death, incapacity, insolvency, liquidation or a similar cause.

Where income is clubbed with another person's income - Section 432(1)

"Where the income of one person is included in total income of any other person under any provision of this Act, the latter alone shall be eligible for a refund under this Chapter in respect of such income."

Where the taxpayer cannot claim the refund himself - Section 432(2)

"Where a person is unable to claim or receive a refund due to him, on account of death, incapacity, insolvency, liquidation or other cause, his legal representative or the trustee or guardian or receiver, shall be entitled to claim or receive such refund for the benefit of such person or his estate."

Frequently asked questions

If my minor child's income is clubbed into mine, who claims the refund?

You do - Section 432(1) says that where one person's income is included in another person's total income under any provision of the Act, only the latter (the person in whose total income it is clubbed) is eligible for the refund on that income.

Who can claim a refund if the taxpayer has died?

The legal representative, trustee, guardian or receiver can claim or receive the refund for the benefit of the deceased person's estate, under Section 432(2), which also covers incapacity, insolvency and liquidation.