Meaning of month or part of month for calculating interest

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Prakash Mehta (Querist)

02 October 2008 I want to clarify my doubt. According to my knowledge there is no definition of month or part of month in Income tax Act. In my example payment of excess tax is not for A.Y 2008-09 but it could be for any A.Y. Further the same is paid by cash and it is not an advance tax. Thus, as per section 244A, interest is to be given on and from 15-1-08. In public there are various meaning like 30 days=1 month or English month Jan. Feb etc.

But to public in general, month is to be understood as Jan. Feb etc.

With above view whether it would be a correct if we considered Jan as full month otherwise it is part of month (15th). similarlly 15th Aug.is part month would be considered as full month.

Now suppose i have made the payment on 31-1-08 and refund received on 2-3-08.

Please advise whether it would be correct to say int is to be given for 3 months and not for 1 month?

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)

02 October 2008 I understand that it is a question for a "question". Therefore the answer is 3 months ie from 31-1-2008 to 02-03-2008.My reference is section 295(2)(kk) and rule 119A of the income tax act,1961 and income tax rules,1962 respectively.

Taxguy

Taxguy (Expert)

03 October 2008 A part of the month is always treated as a full month. It means one english calendar month and not 30days. Therefore you will have to careful there is a months difference in making a payment on 31 of a month and the next day i.e. 1st

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