Monday, 20 July 2015

How much interest is paid on Income Tax Refund?

As per Section 244A of the Income Tax Act, 1961, a taxpayer is entitled to interest @ 0.5% for every month or part of the month i.e. 6% per annum from the first day of April of the assessment year to the date on which the refund is granted.

However, no interest is paid if the amount of refund is less than 10% of the tax payable by the assessee. 

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