Interest of Delayed refund

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Interest on delayed payment of Tax (234A,234B, 234C) is not an allowable expenditure while calculating the income of the assessee... Whether interest received from IT dept on delayed refund is taxable...?

Replies (6)

income tax refund interest is taxable income and income tax refund interest paid and received from income tax dept. cross adjustable.

hi vivek,

              interest received from IT dept is taxable. but i dont think the interest paid is cross adjustable, coz when income tax paid is not a deductible exp., there is no point in allowing interest on delayed pymt as an exp.

Ok...Thanks Mukund... Interest from assessee not allowed.. Interest from Dept must also have been excluded from the calculation na...? Debatable issue na...?

but there s a seperate section charging interest from dept. i am not sure abt the section no. there s no such provision allowing interest paid as an exp.

hi vivek , int from IT Dept s charged u/s.244A

Originally posted by : Mukund
hi vivek , int from IT Dept s charged u/s.244A


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