Interest u/s 244a ??? pls help me

Efiling 977 views 3 replies

PALASH

Nothing

2000 Points Joined June 2012

Respected Members,

During JAN 2014, amount of refund of an assessee already confirmed by CPC Bangalore i.e, Rs 41,240/= with interest u/s 244A for A.Y 2013-2014, BUT unfortunately, the amount was credited into his bank a/c on 16/04/2014.

My question :
Whether the above Assessee is Entitled to Interest u/s 244A from the date of confirmation of Refund amount( i.e, 10/01/2014 ) to the date on which Amount credited through ECS ( i.e, 16/04/2014 ) ?

Pls clarify with valid explanations.

Regards.

Replies (3)

SURESHAN K

Auditor

189 Points Joined January 2014

As per Section 244A. (1) Where refund of any amount becomes due to the assessee under this Act, he shall be entitled to receive, in addition to the said amount, simple interest thereon at the rate of one-half per cent for every month or part of a month comprised in the period from the 1st day of April of the assessment year to the date on which the refund is granted.

Mere confirming the refund amount would not constitute granting of refund. Refund is deemed to be granted on the date on which amount is credited to bank a/c.

Niral Gangar

Management Consulting Investment Adviso

100 Points Joined February 2008

I Agree with Mr. Sureshan

PALASH

Nothing

2000 Points Joined June 2012

No, fully disagree , bcoz, in that return , refund was claimed of Rs 39,520/=, so, as far as sec 244A is concerned , interest amont for the period ( 01/04/2013 to 31/03/2014 i.e, 1 yr ) should be ---> Rs 39520 * 6% = 2371, rounded of Rs 2370, so total refund with interest amount should be Rs 41,890/= not Rs 41240/=..

Regards.