| Originally posted by : pankaj | ||
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IT refund is not taxable but interest on refund is taxable. |
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Agreed!!!!!!!!!!!!!!!!!!!!!!!!!!
is IT refund taxable or not
Page no : 2
Samir
(Chief Accountant)
(80 Points)
Replied 14 January 2011
Satvir Singh
(Newly minted CA)
(1733 Points)
Replied 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)
(531 Points)
Replied 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
CA Biswaranjan
(job)
(149 Points)
Replied 15 January 2011
only interest on income tax refund is taxiable.
Piyush Agarwal
(Service)
(35 Points)
Replied 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)
(484 Points)
Replied 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)
(327 Points)
Replied 15 January 2011
the refund is not taxable but the interest earned on it is taxable under other sources.
Naman
(Accountant)
(339 Points)
Replied 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)
(2345 Points)
Replied 16 January 2011
Refund is already Taxed.Only Interest part is taxable.
VINOD KUMAR JANGRA
(STUDENT)
(24 Points)
Replied 16 January 2011
Refund of income tax is not taxable because this is part of income which arise in that previous year in which tax are paid. And if tax refund is part of TDS than in that previous year we icnclude gross income for caculation of taxable income.
once income is taxable then no tax on that income levied again but interest on refund is arise at the time of refund so it taxable.....
Hitender Gaur
(Consultant(MBA -Finance))
(1302 Points)
Replied 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)
(21 Points)
Replied 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)
(337 Points)
Replied 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"
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