is income tax refund taxable ???????????????????
22 Replies
DT Fundas - Tarun rustagi
( Author)
(1150 Points)
Replied 25 May 2010
dear divya as income tax is not deductible, income tax refund can not be taxed but interest on refund is taxable.
regards
tarun rustagi
M. N. JHA
(CA)
(8316 Points)
Replied 25 May 2010
| Originally posted by : tarun rustagi | ||
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dear divya as income tax is not deductible, income tax refund can not be taxed but interest on refund is taxable. regards tarun rustagi |
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Agree, because refund is excess charge on income not income. Intt. On refund taxable under ios
Rachit
(Analyst)
(913 Points)
Replied 25 May 2010
Since Income Tax paid is not allowable as an expense; refund of income tax excess paid is not taxed as income
Unlike to Sales Tax. Sales tax is allowable as an expense, hence sales tax refund when received is taxed as income
Kalpesh Chauhan,
(Tax Assistant (Accounting Technician CA FINAL CS PROF. PROG. B.Com))
(8311 Points)
Replied 25 May 2010
ME ALSO AGREE WITH Mr. TARUN.
CA LOVELY ARORA
(C.A. B.Com (H) Graduate)
(2151 Points)
Replied 25 May 2010
refund of income tax is not taxable..........
C.Balaji
(Learner)
(1867 Points)
Replied 25 May 2010
Agree with above friends........
Income tax Refund is not taxable... but the Interest on Refund is taxable....
Nitin Grover
(CS)
(1228 Points)
Replied 25 May 2010
Dear Divya
Income Tax Refundable is not taxable because Income Tax is not allowed as an expense.
IT Refundable is a pert of ur that income which has been taxed in its Ass. Year
Int is Taxable as Other Income
If its case in business than IT Refund will be added in Capital.
Regards
Rahi Naik
(student)
(180 Points)
Replied 25 May 2010
| Originally posted by : Divya sharma | ||
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is income tax refund taxable ??????????????????? |
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agree with frds
Nikhil
(Internal Auditor)
(208 Points)
Replied 25 May 2010
| Originally posted by : Divya sharma | ||
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is income tax refund taxable ??????????????????? |
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Since this is the amount that was income for previous yr .......& wrongly taxed / excess taxed.... this amount is non taxable for the yr in which the refund is given.
BUT true.. interest on refund (if any) shall be included in the total income for tax computation purpose...
Hey ... one more thing.... Nice Question.... !!!
sandeepverma
(don't make exuse for study)
(304 Points)
Replied 26 May 2010
yes ma'm
refund of income tax not taxable but interest on this tax should be taxable
Riyaz Khan
(CA CS (Exec) MBA (Fin) Asst. General Manager-SEBI Internal Auditor-British Certifications Inc.)
(1315 Points)
Replied 26 May 2010
Dear Friend, ALWAYS REMEMBER THAT NOT ONLY INCOME TAX REFUND BUT ALSO REFUND OF ANY TYPE OF MONEY IS NOT TAXABLE. Because its refund. Its not your income but your own money that earlier you had paid and now getting back.
However, if you receive anything above your own money (i.e, interest) is obviously taxable, because it was not part of your money :)
Hope you'll remember this concept everytime while dealing with ANY TYPE OF REFUND
Regards,
R.D Khan
Rachit
(Analyst)
(913 Points)
Replied 26 May 2010
| Originally posted by : R.D Khan | ||
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Dear Friend, ALWAYS REMEMBER THAT NOT ONLY INCOME TAX REFUND BUT ALSO REFUND OF ANY TYPE OF MONEY IS NOT TAXABLE. Because its refund. Its not your income but your own money that earlier you had paid and now getting back. However, if you receive anything above your own money (i.e, interest) is obviously taxable, because it was not part of your money :) Hope you'll remember this concept everytime while dealing with ANY TYPE OF REFUND Regards, R.D Khan |
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I am of the view that:
Since Income Tax paid is not allowed as a deduction; refund of income tax paid in excess is not taxed as income.
Unlike Sales Tax; Sales tax is allowed as a deduction, hence sales tax refund when received is taxed as income.
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