|Originally posted by : pankaj|
IT refund is not taxable but interest on refund is taxable.
Satvir Singh (Newly minted CA) 15 January 2011
NO, its not, bcoz it was already part of our income in an earlier year. Bcoz it was part of our income, it was taxed in that year, so it can't be taxed again.
Intt. however is taxable.
Gopal Sengar (CA STUDENT) 15 January 2011
if u already seen income tax refundable in assets side,it will be set off at the time of recive and interest amount will be taxable.
if u have not seen in the assets side it refund amount will be added in capital account
Piyush Agarwal (Service) 15 January 2011
NO IT REFUND IS NOT TAXABLE. ONLY INTEREST RECEIVED ON IT REFUND IS TAXABLE UNDER HEAD INCOME FROM OTHER SOURCES.
M .K. Jha (CA Final) 15 January 2011
Dear angad kr kannaujiya,
refund of Tax is not taxable for principle amount
but int on TDS should be taxable as part of income and taxable under the head of other sources
SUNNY (CA Final & CS Professional) 15 January 2011
the refund is not taxable but the interest earned on it is taxable under other sources.
Naman (Accountant) 15 January 2011
Income Tax Refund is not taxable in the hand of the an assessee because it's the previous year's income which has been assessed to tax. But interest on the same is liable to tax in the current assessment year as it has not been assessed earlier.
CA Himanshu Bansal (Risk Manager) 16 January 2011
Refund is already Taxed.Only Interest part is taxable.
VINOD KUMAR JANGRA (STUDENT) 16 January 2011
Hitender Gaur (Consultant(MBA -Finance)) 17 January 2011
We have taken TDS (or Refund) as income of the pertaining year and paid the tax at the time of computing of tax liability, so no need to pay Income tax on reund of TDS again, but if this refund includs any part of interest on it then only interest part is libile ot pay IT on it and we show it as infcome of the preseeding year.
gaurav khandelwal (Article) 17 January 2011
Income tax not taxable when refund beacuse income tax deposited time deduction is not allow As per income tax Act so refund of income tax is not taxable,but interest of income tax refund is taxable . interest on income tax shown in income from other source head
NARENDER PAWAR (CA final Student) 19 January 2011
No, income tax refund is not taxable, but interest on income tax refund is taxable under the head "income from other source"