hi,
I am abhishek sharma. on November-2013 I received a tax refund of around 29000 and an interest of around 2000 from income tax department. Now, I am watching the same details of tax-refund and interest in FORM 26-AS, so my query is that do I need to pay tax this year on:
a) tax refund
b) interest on tax refund
c) tax refund + interest
or I don't need to pay any tax on these.
Interest on tax refund is taxable under the head income from other sources.
refund is not taxable however u hav to consider interest as income and chargeable to tax
| Originally posted by : abhishek sharma | ||
 |
hi, I am abhishek sharma. on November-2013 I received a tax refund of around 29000 and an interest of around 2000 from income tax department. Now, I am watching the same details of tax-refund and interest in FORM 26-AS, so my query is that do I need to pay tax this year on: a) tax refund b) interest on tax refund c) tax refund + interest or I don't need to pay any tax on these. |
 |
Interest payable on income tax refund amounts fulfill the basic character as income (defined under Section 2(24) of the Income Tax Act), Therefore It is taxable under Income from other sources. Also you can refer the case law of Commissioner of Income Tax-I V v/s M/s Delhi State Industrial & Infrastructure Development Corporation Ltd.
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