Sec 244-A (Interest payable to assessee)


My Question is related to section 244-A : Q. Assessee has received refund of Rs.23853 for A.Y. 2008-09 , Date of Assessment Order is 05/12/09, details of tax deposited are:- 1.Advance Tax Rs.22000=00 and (payments are made on time) 2.TDS Rs. 1853=00. (His Tax liability for A.Y. 2008-09 is NIL, Return of Income has been filed before the due date) A.O. has given Interst U/s-244A of Rs.200=00 (as per Asstt. Order) 1) Whether Interest given by A.O. U/s-244A is Correct? And 2) If A.O. is wrong What is the remedy ?

Interest u/s 244A is at .05% per month or part of the month from the 1st day april of the assessment year till the date of refund, if the refund is due to TDS and Advance Tax. In the above case, it is clear that interest has not been given correctly so, file a letter to the AO seeking the rectification of order.

Practicing CMA

It is 0.5% p.m not 0.05%...


thank you for the knowledge

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