Interest on delayed payment of Tax (234A,234B, 234C) is not an allowable expenditure while calculating the income of the assessee... Whether interest received from IT dept on delayed refund is taxable...?
Vivek (Finally passed CA Final...!!!!!) (1097 Points)
16 January 2010Interest on delayed payment of Tax (234A,234B, 234C) is not an allowable expenditure while calculating the income of the assessee... Whether interest received from IT dept on delayed refund is taxable...?
SUNIL SINGH
(ACCOUNTANTS AND INCOMETAX WORKS)
(142 Points)
Replied 16 January 2010
income tax refund interest is taxable income and income tax refund interest paid and received from income tax dept. cross adjustable.
CA.G.Muguntha Narayanan
(Internal Auditor at TVS Motors)
(2195 Points)
Replied 16 January 2010
hi vivek,
interest received from IT dept is taxable. but i dont think the interest paid is cross adjustable, coz when income tax paid is not a deductible exp., there is no point in allowing interest on delayed pymt as an exp.
Vivek
(Finally passed CA Final...!!!!!)
(1097 Points)
Replied 16 January 2010
Ok...Thanks Mukund... Interest from assessee not allowed.. Interest from Dept must also have been excluded from the calculation na...? Debatable issue na...?
CA.G.Muguntha Narayanan
(Internal Auditor at TVS Motors)
(2195 Points)
Replied 16 January 2010
but there s a seperate section charging interest from dept. i am not sure abt the section no. there s no such provision allowing interest paid as an exp.
CA.G.Muguntha Narayanan
(Internal Auditor at TVS Motors)
(2195 Points)
Replied 16 January 2010
hi vivek , int from IT Dept s charged u/s.244A
anuj dhingra
(Accounts Executive)
(152 Points)
Replied 16 January 2010
| Originally posted by : Mukund | ||
 |
hi vivek , int from IT Dept s charged u/s.244A |  |
LIVE Course on Foreign Exchange Management Act (FEMA)(with recording)
LIVE Course on Foreign Exchange Management Act (FEMA)(without recording)
CAclubindia
