dear divya as income tax is not deductible, income tax refund can not be taxed but interest on refund is taxable.

regards

tarun rustagi

Since Income Tax paid is not allowable as an expense; refund of income tax excess paid is not taxed as income

Unlike to Sales Tax. Sales tax is allowable as an expense, hence sales tax refund when received is taxed as income

Agree with tarun and Jai kishan.

ME ALSO AGREE WITH Mr. TARUN.

refund of income tax is not taxable..........

Agree with above friends........

Income tax Refund is not taxable... but the Interest on Refund is taxable....

Dear Divya

Income Tax Refundable is not taxable because Income Tax is not allowed as an expense.

IT Refundable is a pert of ur that income which has been taxed in its Ass. Year

Int is Taxable as Other Income

If its case in business than IT Refund will be added in Capital.

Regards

Originally posted by : Divya sharma
	is income tax refund taxable ???????????????????

agree with frds

agree wid  frnd

Originally posted by : Divya sharma
	is income tax refund taxable ???????????????????

 Since this is the amount that was income for previous yr .......& wrongly taxed /  excess taxed.... this amount is non taxable for the yr in which the refund is given.

BUT true.. interest on refund (if any) shall be included in the total income for tax computation purpose...

Hey ... one more thing.... Nice Question.... !!!

yes ma'm 

refund of income tax not taxable but interest on this tax should be taxable

Dear Friend, ALWAYS REMEMBER THAT NOT ONLY INCOME TAX REFUND BUT ALSO REFUND OF ANY TYPE OF MONEY IS NOT TAXABLE. Because its refund. Its not your income but your own money that earlier you had paid and now getting back.

However, if you receive anything above your own money (i.e, interest)  is obviously taxable, because it was not part of your money :)

Hope you'll remember this concept everytime while dealing with ANY TYPE OF REFUND

Regards,

R.D Khan

Originally posted by : R.D Khan
	Dear Friend, ALWAYS REMEMBER THAT NOT ONLY INCOME TAX REFUND BUT ALSO REFUND OF ANY TYPE OF MONEY IS NOT TAXABLE. Because its refund. Its not your income but your own money that earlier you had paid and now getting back. However, if you receive anything above your own money (i.e, interest)  is obviously taxable, because it was not part of your money :) Hope you'll remember this concept everytime while dealing with ANY TYPE OF REFUND   Regards, R.D Khan

 I am of the view that:

Since Income Tax paid is not allowed as a deduction; refund of income tax paid in excess is not taxed as income.

Unlike Sales Tax;  Sales tax is allowed as a deduction, hence sales tax refund when received is taxed as income.