Interest under section 244a

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

13 September 2016 Dear Sir/Madam,

I have query regarding interest on tax refund u/s 244a:

We have file a return for the AY 2013-14 in which we have claimed a refund of Rs. 1,81,66,560/-, assessment u/s 143(1) received on 1st May 2014 and department accept the refund claimed and also provide interest u/s 244a of Rs. 13,62,490/- We received demand draft dated 5th July 2014. after that above return selected for the assessment u/s143(3) and officer accept our original return as it is. but he raised a demand u/s 234D of Rs. 2,00,760/- for excess interest paid.

As per section 244a interest shall be calculated at the rate of [one-half per cent] for every month or part of a month comprised in the period from the 1st day of April of the assessment year to the date on which the refund is granted.

Queries:
1. What will be the grant date: 1st May 2014 or 5th July 2014
2. whether their demand valid?

Thanks

Amol S Joglekar

Amol S Joglekar (Expert)

13 September 2016 01/05/2014 shall be taken as the date of grant of refund by the department....(You can challenge the same by preferring the Appeal)
But PLEASE tell me one thing....as per 234D......the amount refunded under sub-section (1) of section 143 exceeds the amount refundable on regular assessment........
in your case you say that your case is accepted as it is.... then where comes the question of applying 234D... Can you please throw some light on this?

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