Refund

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Dhaval

Dhaval (Querist)
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30 August 2012 Is IT refund taxsble or exempt income?
Where it is mentioned in IT act?

K Srinivas, CMA CS

K Srinivas, CMA CS (Expert)
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31 August 2012 IT refund is not an "Income" in the first place. It is just a Capital receipt and hence not taxable.

However, interest on IT Refund is an income and is taxable under Incoome from Other sources

K Srinivas, CMA CS

K Srinivas, CMA CS (Expert)
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Praveen Kumar Rathi

Praveen Kumar Rathi (Expert)
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01 September 2012 Interest on Refund is taxable only into IFOS head.

Dhaval

Dhaval (Querist)
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01 September 2012 How & where to show this refund amount in BS or p&l a/c?

Praveen Kumar Rathi

Praveen Kumar Rathi (Expert)
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01 September 2012 you should credit refund part in your capital account, and interest part (income) in P&L a/c.

K Srinivas, CMA CS

K Srinivas, CMA CS (Expert)
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01 September 2012 Agree with Praveen Kumar rathi 100%

Dhaval

Dhaval (Querist)
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01 September 2012 What to do if compsny gets the refund?

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Praveen Kumar Rathi

Praveen Kumar Rathi (Expert)
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03 September 2012 Companies show TDS receivables in its assets side under Loans and Advances Part. so if they receive refund then principal part is eliminated by doing reverse entry and interest part will be shown in P&L .

Dhaval

Dhaval (Querist)
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03 September 2012 Thanks Mr. Pravin