Tax payment financial year

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Darryl Castellino (Querist)
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05 February 2017 I have received tax refund with interest by the Income tax department via a bank demand draft dated in the last week of January 2017 and is valid for 3 months. My question when am I liable to pay tax on the interest received? As per the date of the DD or when I deposit the DD in my account? If I am liable to pay on depositing the draft then depositing in April 2017 gives me greater tax benefits as the tax has reduced from 10 to 5 percent. Please comment.

Darryl Castellino

Darryl Castellino (Querist)
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09 February 2017 no one has the answer so just closing this thread

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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19 October 2021 Yes, interest received on refund is taxable.
The interest is received in the DD itself, which is chargeable to tax on the date of issue of the DD.

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