Is the interest on income tax refund is taxable
This query is : Resolved
28 December 2013
Hi all,
Will the interest on income tax refund is taxable ?
If yes ,why the interest on late filing of income tax returns and late payment (234a,b,c) is not allowed as an expense ?
28 December 2013
1. Interest on Income Tax Refund is TAXABLE because it is not TAX FREE. See Section 10 of the Income Tax Act.
.
.
2. Interest on late filing of income tax returns is NOT ALLOWABLE
because
interest paid to run the business is deductible.
And late filing of the returns is NOT REQUIRED to run the business.
.
.
.
2. Interest on late filing of income tax returns is NOT ALLOWABLE
because
interest paid to run the business is deductible.
And late filing of the returns is NOT REQUIRED to run the business.
.
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