Tax liability on income tax refund. in which assessment year?

411 views 5 replies

Spp

Engineer

25 Points Joined March 2019

I am an NRI. I filed my tax return for AY 17 - 18 in June 2017. This was process in March 24 2019 and refund credited last week. I got INR 45000 as interest for delayed refund. TDS of 15000 was deducted from the interest at 30%. Will this interest be considered my income in AY 17 - 18 or AY 19 - 20?

The reason for asking is that if it's in AY 17 - 18, the tax is 30% as deducted. If it's my income in AY 19 - 20, then the tax liability is 10% due to my lower income for AY 19 - 20 where I can claim a refund this year.

Please guide to understand in which AY the interest income need to be accounted.

Replies (5)

Chhalani and Associates

CA - www.cachhalani.com

142 Points Joined October 2014

Take it as 'Income from other sources' in AY 19-20

CA. Kasi Reddy Nallappa Reddy

Chartered Accountant

153 Points Joined February 2017

You should consider the interest on income tax refund in the AY 19-20. In case of the non-resident the department would deduct the TDS at the rate of 31.2% (including cess at the rate of 4%).

And also you can claim refund, if your taxes deducted is more than your tax liability.

Spp

Engineer

25 Points Joined March 2019

The problem is that when trying to file the itr for AY 19-20, it’s not showing up under TDS and not sure it will have reference in 26 AS. What reference number should I use to register this TDS while filing ITR?

CHAVDA SANJAY MANSUKHBHAI

proprietor

402 Points Joined November 2012

IN A.Y. 2019-20 INTEREST INCOME ON I.T. REFUND

PLEASE CHECK 26AS IN A.Y. 2019-20.

IF INCOME HAS BEEN SHOWN IN A.Y. 2019-20 BY INCOME TAX DEPARTMENT, YOU CAN CONSIDERED INCOME OF A.Y. 2019-20 AND CLAIM T.D.S. WHILE FILING INCOME TAX RETURN.

INCOME TAX DEPARTMENT ALSO SEND FROM 16A IN YOUR REGISTER MAIL ID.