Interst on self assessment tax excess paid

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

23 April 2016 By mistake self assessment tax is excess paid then on excess paid os self assessment tax interest available or not.

CA Mehta Ankur N.

CA Mehta Ankur N. (Expert)
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23 April 2016 yes u will get refund with interest.. dont worry.

CA Kumar Mukesh

CA Kumar Mukesh (Expert)
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23 April 2016 If you made excess payment of taxes... You need to claim it as refund in your return of income... Definitely you will get interest if refund amount is exceeds the limits specify under section 244

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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23 April 2016 Statute does not say to pay interest on refund on account of excess payment of self assessment tax. However, Mumbai High Court in the case of Stockholding Corporation of India Ltd Vs. CIT ,reported in (2015) 373 ITR 282, said INTEREST IS PAYABLE on such refund.

CA Kumar Mukesh

CA Kumar Mukesh (Expert)
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23 April 2016 Sir.... Clause (a) of said section covers only tds, advance tax and tax paid under section 115W... But clause (b) of section covers all others... And all other covers self assessment too... So... I dont think it would be right to conclude statute doesn't allows interest on excess payment of self assessment tax...

Suresh Ramaswamy

Suresh Ramaswamy (Expert)
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24 April 2016 I am in agreement with Mr. Warrier - the plain reading of the statute does ensure refund of interest on self assessment tax. However, various judicial decisions favour refund on all excess tax paid. The reason the department is hesitant to pay tax on self assessment tax paid in excess is clear. I intentionally pay Rs.1 lakh in excess as self assement tax and claim the same as paid due to error. How to distinguish between genuine lapse and intentional excess payment. Whereas in case of Advance Tax, I may have over estimated my income and in case of TDS the payment of tax is not in the assessee's hand except to the extent of procuring lower deduction certificate from the tax authorities.

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