Our Private Limited Company was received the Income Tax Notice under section 142(1) on 20.08.2018 from Income Tax Department for 2016-17. The Income Tax Scrutiny for AY 2016-17 was completed in December-2018 and the final Income Tax order under section 143(3) is issued on 28.12.2018 from DCIT Office, Mumbai and in order there is Income Tax Refund of Rs.14,78,550/-along with Interest under section 244A of Rs.158715/-. Until November-2021 the Income Tax Refund was not received and in December-2021 the refund was credited in company's Bank account. But the Income Tax refund of Rs.14,78,550/-, which was received in Bank account is only as per Income Tax Order issued on 28.12.2018. (i.e-Rs.14,78,550,/-).
Interest rate is 0.5% per month which will be applicable on Income Tax Refund of Rs.13,19,835/- from Dec-2018 to Dec-2021 or not? The taxpayer is eligible for interest on refunds or not. Can we file a grievance in Income Tax Department?
18 December 2021
Yes, it is disputable issue. Just filing complaint under Grievances may not help, as act does not specify interest on delayed payment after assessment order. You may need to file petition after complaining to DCIT.
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