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Income tax refund

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Suresh G S

46 Points Posted on 23 December 2020

In AY 2018-19, due to error in filing I had paid excess tax over and above TDS due to wrong interpretation of Capital Gains tax which had been amended bringing in the grandfathering concept.

Subsequently a CA helped me in revising the returns and I received a refund intimation for the excess tax paid during the same AY. The refund though was credited in April of 2019. The amount is shown in AS26 of FY 2019-20.

Should I report the receipt of refund as there is no interest paid on the same?

Please clarify.

Replies (4)

Quick Summary

This discussion clarifies whether an income tax refund received in April 2019 for the AY 2018-19 needs to be reported. The consensus is that the refund amount itself is not taxable. However, if any interest was paid on the refund, that interest income would be taxable under 'income from other sources'.

Krishna Chaudhary

Accountant

1331 Points Posted on 24 December 2020

Amount of refund of income tax is not taxable. what if you have received interest on income tax refund it will be taxable under the head income from other sources.