Treatment of interest received on refund by IT

Akanksha Srivastava (CA Final) (38 Points)

24 September 2009

Please anyone tell me what is the accounting & income tax treatment of interest received on refund by Income Tax Dept.

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12 Replies

VARUN (PCC STUDENT) (523 Points)
Replied 24 September 2009

As per income tax treatment, the interest received on refund is taxable u/h Other Sources ....

(Guest)

Yes Interst recd on refund of income tax is added as income under the head income from other sources.

Sorabh Gupta (Manager ( Taxation )) (877 Points)
Replied 24 September 2009

Akanksha

Accounting Treatment for it is-:

Bank/Cash Dr.

To Interest Received Cr.

And then

Interest received Dr.

To P&LA/c OR Income Expenditure Cr.

As Poonam says right that It is taxable under head Income from other sources. under income tax Act.

Sumit Jain (CA) (4760 Points)
Replied 24 September 2009

sorabh is right

1 Like

GAURAV AGARWAL (CA FINAL) (76 Points)
Replied 24 September 2009

INT.WILL GET CR.TO UR P/L ACCT.AS UR TAXABLE INCOME

Gaurang Desai (CA FINAL & CS Inter Student) (123 Points)
Replied 03 October 2009

int which is recd is taxable under IT ACT under the income from other sources & in a/c's show in p&l a/c

ashish gupta ( student) (1922 Points)
Replied 03 October 2009

It is taxable income

Dintakurthi Tirumala (CA FINAL) (15994 Points)
Replied 05 October 2009

it is nothing but other income and it is taxable under the head income from other sources

VIJAY KUMAR SHARDA (TAX PRACTITIONER) (57 Points)
Replied 02 September 2010

Originally posted by : Sorabh Gupta
	Akanksha Accounting Treatment for it is-: Bank/Cash Dr. To Interest Received Cr. And then Interest received Dr. To P&LA/c OR Income Expenditure Cr. As Poonam says right that It is taxable under head Income from other sources. under income tax Act.