Interest on delayed refund [ay 2007-08]

Others 534 views 3 replies

Kiran. S

CTO

745 Points Joined August 2015

I filed my AY 2007-08 return on 30/07/2007 physically at ward.

On 29/05/2009 i received letter from AO that assesment is over and asking me for bank details to credit Refund.

I went to the ward office and gave bank details and MICR code immediately and the computer operator fed into the system and told me that i will get refund in 8 days. After that i completely forgot about it.

A few days back when i was arranging return and refund file i noticed that i did not receive assesment order and refund in bank. I went to the ward office and asked for the details. The refund order was stuck up in Range migration in 2009. Refund amount that time was 1090 plus rs 80 interest.

My question is that they delayed the payment for 6 years. Whether i deserve rs 1170 or 1090 plus interest for 6 years. Under what law can i proceed. I will be getting refund in 7 days now. Thanks

Replies (3)

Udgam Koomar

Tax Technologist

1949 Points Joined August 2011

The IT deptt provides your interest of 1/2% per month i.e. 6% annually for delays

S. Shiroor

Others

1212 Points Joined July 2015

[1] They have given Rs 80 as int on Rs 1090 refund.

[2] Int rate is 6% per annum. from 1/04/2007 for 2007-08 AY

[3] By back calculation with data-> whatif Analysis -> the date works out to 20/06/2008

[4] Hence assesment was completed on date 20/06/2008.

[5] They have sent to you letter dated 29/05/2009 to give ur bank account details [11 months late]

[6] You must have got the letter by 31st May or 1st june if in same city

[7] You must have gone to that office in 2 days time say 3rd june 2009

[8] according to you 8 days means you must have got refund by 11 june 2009

[9] you say refund did not come by 11 june 2009. [or later]

[10] You must have gone to that off in first week of Aug 2015 let us say 05/08/2015

[11] According to you it was found that refund was stuck up in range migration [God knows what it means]

[12] Theoritical calculation suggest you should get int on Rs1090 for days =date(2015,8,5) - date(2007,4,1) i.e 3049 days [type in xl sheet]

[13] int on 3049 days is 3049/365* 1090 * 6/100 which is 546.31 rounding off to nearest rs 5 is Rs 545.

[14] most probably they will give rs 80 only. Quietly take it and forget about it.

Shiroor

Structural Consultant for design of bridges

Kiran. S

CTO

745 Points Joined August 2015

Thanks for your detective type Answer. But i trusted the Department to give refund within 8/10 days. Range Migration means from range 7 to range 13. Now again my ward has chnaged from 13(4) to 4(2). I hope again it does not get stuck up in range migration.