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Angad kr kannaujiya (Studant)     14 January 2011

is IT refund taxable or not

Hi Dear all, is IT refund taxable or not, or should be it captilised in case of individual and partnershoip firm and company ? thanks in advance .

 43 Replies

Pankaj Arora

Pankaj Arora (Learner)     14 January 2011


IT refund is not taxable but interest on refund is taxable.

1 Like
Sonam Bidasaria

Sonam Bidasaria (CA)     14 January 2011

Agree with the above answer.


Batul (Article assistant)     14 January 2011

IT refund is not taxable

But the interest earned on such refund is taxable..


AASHISH (CA)     14 January 2011

Only Interest on such Income tax refund is taxable....

 CA Somnath Sarkar

CA Somnath Sarkar (in between jobs)     14 January 2011

IT u piad is personal nature exp. This type of exp. can't be deducted and refund of these type of exp can't be taken as income, for income tax purposes.

Nilesh Jain

Nilesh Jain (Assistant Manager)     14 January 2011

only interest part is taxable. because we never claim Income tax paid as a expense so refund is also not treated as income and hence exempt.

U S Sharma

U S Sharma (     14 January 2011

income tax refund receipt is capital receipt hence not taxable, but interest is part of P/L so taxable



Whole of the refund amount is not taxable.

only the difference (i.e Interest )amount is taxable under the Head INCOME FROM OTHER SOURCE.

binit kumar jindal

binit kumar jindal (chartered accountant)     14 January 2011

it refund is a part of your income every time, e.g. when you are in employement income tax is deducted from your salary and you already add this part in your gross total income , other example in contractorship tds deducted in that case also total income includes tds paid hence it already taken as income and if tax was not applicable in your income then you can took this tds in your b/s as current assets

1 Like
Bhav  Bhuti Sharma

Bhav Bhuti Sharma (Towards Professionalism )     14 January 2011


he amount of refund is not taxable.

However, interest received on tax refund is taxable. In the above instance interest received is Rs 550 and hence only this amount will be taxable.

The rate of tax would be as per your applicable slab rate. You may include it in the taxable income of the year in which such refund is received.

Megha 84A

Megha 84A (Article Assistant)     14 January 2011

No IT refund is not at all Taxable.

Yes it is to be capitalised.......

CA Saba Naaz

CA Saba Naaz (Chartered Accountant)     14 January 2011

Originally posted by : pankaj


IT refund is not taxable but interest on refund is taxable.


3 Like

Sini (Student)     14 January 2011



IT refund is not taxable but interest on refund is taxable.
CA Dhanashree Gandhi

CA Dhanashree Gandhi (C.A.)     14 January 2011

Interest on such Income tax refund is taxable.

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