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IT refund and interest due thereon

sheetal (a) (28 Points)

30 July 2010

Income tax refund was due to the company for A.Y.2007-08. No Refund order or refund cheque was received by the company till March 2010. On follow up it was noticed that the Refund order in this respect was granted in February 2009. The cheque is not encashed into the account of the company.

In the above situation the query is:

1. Can company claim for interest on refund?

2. If yes, then till Feb'09 or upto current date of grant of refund? & How?

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2 Replies

Harpreet (* * * * * *) (1670 Points)
Replied 30 July 2010

You need to write an application to income tax authority that you have not received the cheque for a.y.06-07 in respect to refund return of income filled by the company.

It will take some time sheetal but definitely you will get the refund.

Member (Management) (325 Points)
Replied 30 July 2010

Interest u/s 244A is to be paid till the date of issue of refund. If you are going to receive the refund this year and the interest thereon is substantial, you will have to take it into account for advance tax calculations.