Refund u/s 244A

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

04 March 2010 Sir,
I would like to know whether interest u/s 244A is granted when someone has paid self assessment tax and filed the revised return wherein net result comes to refund as i have seen no where it is mention please suggest me thank you.

Aditya Maheshwari

Aditya Maheshwari (Expert)
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04 March 2010 Interest u/s 244A not payable when refund arises due to self assessment tax paid.

Aditya Maheshwari

Aditya Maheshwari (Expert)
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04 March 2010 Section 244A reads as under:
244A. (1) 73[Where refund of any amount becomes due to the assessee under this Act], he shall, subject to the provisions of this section, be entitled to receive, in addition to the said amount, simple interest thereon calculated in the following manner, namely :â€”

(a) where the refund is out of any tax 74[paid under section 115WJ or] 75[collected at source under section 206C or] paid by way of advance tax or treated as paid under section 199, during the financial year immediately preceding the assessment year, such interest shall be calculated at the rate of 76[one-half per cent] for every month or part of a month comprised in the period from the 1st day of April of the assessment year to the date on which the refund is granted:

Provided that no interest shall be payable if the amount of refund is less than ten per cent of the tax as determined 77[under 78[sub-section (1) of section 115WE or] sub-section (1) of section 143 or] on regular assessment;

(b) in any other case, such interest shall be calculated at the rate of 79[one-half per cent] for every month or part of a month comprised in the period or periods from the date or, as the case may be, dates of payment of the tax or penalty to the date on which the refund is granted.

So it is clearly mentioned that in case of refund arising due to TDS deducted or advance tax paid interest is to be payable.

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Querist : Anonymous

Querist : Anonymous (Querist)

04 March 2010 But in 244A (b) there is written "in any other case"

Aditya Maheshwari

Aditya Maheshwari (Expert)
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04 March 2010 I did not reproduce the explanation to Section 244A(b) which states as under:

Explanation.â€”For the purposes of this clause, â€œdate of payment of tax or penaltyâ€ means the date on and from which the amount of tax or penalty specified in the notice of demand issued under section 156 is paid in excess of such demand.

So in case of tax paid after notice of demand issued u/s 156 interest will be payable by the department if subsequently refund is there