Interest under 244 A

Tax queries 596 views 1 replies
We have received an order of assessment in which the officer has given refund of around 7 lacs for AY 2014-15 however not allowed interest under section 244A of the Act. Please advice action on above.
Replies (1)

First of all, you may have to confirm the fact that you are in-fact eligible for interest u/s 244A.

In some cases, interest is not payable on refund granted. For instance:

1.  No interest is payable if the excess payment is less than 10% of the tax determined on regular assessment or under section 143(1).

2. Refund of TDS wrongly deducted and remitted to the Government is not eligible for interest u/s 244A. [Universal Cables Ltd. v. CIT (2010) [MP]].

Anyway, once you have confirmed the eligibility of your assessee for interest on refund, you may have to intimate the Assessing officer through a letter pointing out the non-payment of interest u/s 244A. 

There are many instances where interest u/s 244A gets wrongfully omitted by the department. 

 

Also, read the CBDT instruction regarding such interest .... just FYI:-

Vide Instruction no. 2/2007, dated march 28,2007, the board has reminded all Assessing officers that while granting refund to the assessees, care should be taken to ensure that any interest payable under section 244A on the amount of refund due should be granted simultaneously with the grant of refund and there should in no case any omission or delay in the grant of such interest. Failure to do so will be viewed adversely by the board and the officer concerned will be held personally accountable, inviting appropriate action from the board.

 


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
12 June 2026
Accounts & Taxation Executive

Winshine Financial Services

Mumbai

CA Inter

View Details
Company
26 May 2026
Audit executive

vdsr & co LLP

Chennai

CA Inter

View Details
Company
23 May 2026
Account Executive

SMJ global advisors pvt ltd

New Delhi

B.Com

View Details
Company
ARTICLESHIP 08 June 2026
Internal & Taxation Article

O P Bagla & Co LLP

New Delhi

CA Inter

View Details
Company
ARTICLESHIP 28 May 2026
Accounts, Audit & Compliance Executive

Shyam Joshi & Associates

Pune

B.Com

View Details
Company
29 May 2026
Accounts assistant

Shubh Consultancy

Mumbai

Graduate (Any)

View Details
Company
21 May 2026
Associate

PWC

Kolkata

CA

View Details
Company
Featured 27 May 2026
Lead Conversion Executive / Sales Closing Executive

SMJ global advisors pvt ltd

New Delhi

B.Com

View Details