Income Tax Refund

Dear Sir,

                     U get interest for delayed period.But in the circumstances u stated is very different.In this case order , completion of assessment may be one year before. Interest would be calculated up to that date. U may receive Refund with interest after two years. One year is grabbed by Income Tax Department. It should be taken care by C B D T in such circumstances .

C A Shah D J
USA

djshah1944@yahoo.com

Last year I got a refund of excess deduction to the tune of Rs.1000/- pertaining to the period 2006-2007 for which no interest has been paid.

Interest is payable u/s 244A of the Income tax Act, 1961 from the 1st day of the relevant assessment year to the date of grant of refund. However , if the excess payment is less than 10% of the tax determined u/s 143(1) of the Act.

Tax Reforms and Amendment to IT Act is the need of the hour.  In order to avoid payment and refund involving multiple transactions, Govt must introduce adjustement of Payable and Receivable for consecutive assessment years.  This would mostly nullify Refund concept from the IT authorities are concerned.

If u have not received Interest then u should file 154 rectification application.

C A Shah D J
USA

correctiion:

Interest is payable u/s 244A of the Income tax Act, 1961 from the 1st day of the relevant assessment year to the date of grant of refund. However , no interest would be payable if the excess payment is less than 10% of the tax determined u/s 143(1) of the Act.

Extracts from the Proposals in  Direct Taxes Code Bill, 2009 :

" I. - Refund

Refunds

212.(1) An assessee shall be entitled to a refund of the excess of any amount paid by him

or on his behalf, or treated as paid by him or on his behalf, for any financial year,

over the amount with which he is liable under this Code, and such refund shall be

issued in the prescribed manner.

(2) An assessee shall, in a case where an assessment is set aside or cancelled or an

order of fresh assessment is directed to be made in an appeal, or any other

proceeding under the Code, be entitled to the refund only on the making of the

fresh assessment.

B-130

(3) The amount of refund determined under sub-section (1), or sub-section (2), shall

be reduced by the amount, if any, remaining payable under this Code by the assessee

to whom the refund is due, and the balance amount of refund, if any, shall be

issued, alongwith an intimation to this effect to the assessee "

I have seen many people use the RTI act to speed up the it refund.

As per the rti rules of it dept,your assessment officer is the PIO.

One may draft a suitable rti query with the it dept.

By activities of many people using rti,there is lot of improvement in the refund mechanism. Earlier,many were forced to bribe the concerned official for early refund.