Refund set-off and withholding rules govern adjustment of tax refunds against outstanding dues during pending assessment proceedings. Where a refund becomes due, the tax authority may, after written intimation, set off the refundable amount against any sum remaining payable by the person. A refund may also be withheld during pending assessment or reassessment proceedings, subject to recorded reasons and prior approval. From 01.10.2024, withholding is limited to sixty days from the date of assessment or reassessment; earlier, it could continue up to that date where grant of the refund was likely to adversely affect the revenue.