Taxability of interest on it refund

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

27 January 2016 Can interest received on IT refund be credited to P & L account and set off against interest on loans debited to P & L account in the case of a Firm ? What is the tax impact ?

KAVIRAJA ADDANGADI

KAVIRAJA ADDANGADI (Expert)
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27 January 2016 No interest on Tax refund you have to declare from income from other sources, you can not claim any expenses.

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Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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27 January 2016 1. Yes can be credited to P & L

2. Set off with interest expenses is against' matching principle'.

3. Taxable and to be offered as income under the head 'income from other sources'.

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