Why Interest on Income tax refund is taxable?

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

10 October 2010 An assessee charges interest on refund receivable from IT Dept. and it is charged because of delay by IT Dept.
Then making interest on refund taxable is nothing but a LOOT of assessees.

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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10 October 2010 Even the interest received due to Department delay, but this is income of the assessee, so taxable

taxindiaconnect

taxindiaconnect (Expert)
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19 October 2010 Simple, it is an income from other source.

CA. Chikkerur C R

CA. Chikkerur C R (Expert)
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20 October 2010 Dear

As per Sec 56 of IT Act, Interest Income is chargeable as other income. This section does not specified source. so any interest income is chargeable