17 October 2007
Any Interest on IT Refund is a taxable Income. The refundable amount is not taxable. It depends upon the same which have been shown in earlier years. For Ex : The provision of IT and TDS/Advance tax paid if you would have treated as b/s item the refund also to be treated as same. If you would not have followed the same above said you can grouped under Indirect income and in computation statement except that interest portion you can disallow it.
18 October 2007
If you have shown the Provisions for IT the basic redunf amount will be adjusted against the same and Interest would be treated as Income " Interest on Income Tax Refund".
It aslo depends on the Type of Business , I mean Propreitorhsip, Partner ship Co etc........
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