Dear Experts.
In ITR utility I notice that in ITR1 or 2 in Other Income sources, it has a field for Income Tax Refund.
However I strongly feel that it's a wrong naming of the field in the utility.
It should have been named as Interest on Refund. Only the interest earned on refund should be taxable. Refund was earning from previous year whose tax liability was settled in that previous year.
Would appreciate a confirmation on this.
Thanks
| Originally posted by : Rajesh | ||
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It should have been named as Interest on Refund. Only the interest earned on refund should be taxable. |  |
The Form is as follows:
Income from Other Sources
Gross income chargeable to tax at normal applicable rates
a Dividends, Gross
b Interest, Gross
i From Savings Bank
ii From Deposits (Bank/ Post Office/ Co-operative-Society)
iii From Income-tax Refund
iv In the nature of Pass through income/ loss
v Others
It is clear from the form that it is gross Interest from Income-tax refund.
CAclubindia
