Income tax refund

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Dear Sir/Mam,

Our company has received Income Tax Refund.

Kindly let us know the treatment in Books of Account. Is it Income or Not? 

Replies (1)

Dear Sir,

Receipt of income tax refund is not an income in its own sense... however, if you receive interest on such refund.. then that would be constituted as your income under the head "income from other sources"... and

amount of refund will be net-off with the amount of refund receivable that was standing in your books as current assets.. that amount will be wholly set-off and above that amount i.e. interest is you income as said above.


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