Interest on Refund

This query is : Resolved

J. V. Adavi (Querist)
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13 April 2009 My son e-filed his return of income, for A.Y.2007-2008, on 27-07-2007, and filed Verification form in ITR-V on 14.08.2007. He claimed a refund of Rs.87,365/-. The Assessing Officer issued a letter, dated 23-12-2008, requesting for furnishing Form 16A and TDS certificates for processing of return and issue of refund (if any). On 12-01-2009, the original TDS certificate of the employer, in Form 16, showing a total TDS of Rs.5,32,981/- (as shown in the return of income), was submitted at the I.T. Office.

The Assessing Officer issued Intimation under Section 143(1), dated 31/03/2009, showing TDS of Rs.3,20,596/-. This figure appears to bear no relation whatsoever to the figures shown in the e-filed Return of Income. Further, the Assessing Officer has shown an amount of Rs.1,40,785/- as Tax Payable, including interest under section 234B and 234C.

My son filed an application, on 13-04-2009, under section 154 and 155(14), for rectification. Hopefully, the rectification will be carried out, and refund with interest will be granted.

My query is this:

With reference to which of the following dates will interest be calculated:

1.Date of e-filing of return I.e.27-07-2007;
2.Date of filing Verification form in ITR-V I.e.14-08-2007;
3.Date of submission of the TDS certificate requested by the Assessing Officer I.e.12-01-2009;
4.Date of filing of Application for Rectification u/s 154 I.e.13-04-2009?

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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13 April 2009 The concerned section is 244A. Eligibility of interest arises if the refund amount is not less than 10% of the amount of tax determined u/s 143(1).
Present rate of interest is 0.50% per month or part of a month.
In the cited situation, the period of interest commences from 01/04/2007 to the date on which refund is granted.
N.B:- If the delay in the refund proceedings are due to reason attributable to the assessee, wholly or in part, such period of delay shall be excluded from the period of interest.

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J. V. Adavi

J. V. Adavi (Querist)
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14 April 2009 Dear Mr. Warrier,

Many thanks for your prompt reply.

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