Treatment of interest received on refund by IT

As per income tax treatment, the interest received on refund is taxable u/h Other Sources ....

Yes Interst recd on refund of income tax is added as income under the head income from other sources.

Akanksha

Accounting Treatment for it is-:

Bank/Cash Dr.

To Interest Received Cr.

And then

Interest received Dr.

To P&LA/c OR Income Expenditure Cr.

As Poonam says right that It is taxable under head Income from other sources. under income tax Act.

 sorabh is right

 INT.WILL GET CR.TO UR P/L ACCT.AS UR TAXABLE INCOME

int which is recd is taxable under IT ACT under the income from other sources & in a/c's show in p&l a/c

It is taxable income

it is nothing but other income and it is taxable under the head income from other sources

Accounting Treatment of interest received on refund by Income Tax Dept. 

We have to show Interest is Prior Period or Current year Interest.

It is current year interest, means in which year you actually received the interest for such year it is taxable.

OM SAI SRI SAI JAI JAI SAI

Assessment order for the year 2008-09

Assessment completed in year 2012-13, refund and his interest received in the year 2012-13.

How interest i accounting in the books?

up to 2008-09 to 2010-11 prior period and 2012-13 is current year interest