Income Tax Refund: If you too are waiting for income tax refund, then see the big news on the interest received on it.
Income Tax Refund: If you are also waiting for income tax refund then there is big news for you. If you have not received the refund from the Income Tax Department even after filing the Income Tax Return, then definitely read this news. Know whether you will get interest on the delay caused by the Income Tax Department in giving the refund or not and if yes, how much interest will you get.
If there is a delay in getting the refund, you will get interest.
In the last few years, the Income Tax Department has started giving refunds very fast but even today there are many people who are waiting for the refund. It is known that the Income Tax Department pays interest to the taxpayers if there is a delay in refund. But under what circumstances this interest is paid, we know from the experts. In CNBC Awaaz’s special show Tax Guru, tax expert Gauri Chadha gave important information to the taxpayers.
Will tax have to be paid on interest?
Gauri Chadha told that under section 143(1) you get intimation of refund. In case of delay in refund, the IT department pays 0.5 percent interest every month from April. That means 6 percent interest is generated annually. Next year, tax will have to be paid on interest under income from other sources. You will have to pay this tax next year. You do not get any discount on this. If interest of even Rs 100 is earned, the government will charge tax on that also.
Keep this in mind
If your refund fails due to any mistake of yours like if your bank account is not validated or your Aadhaar and PAN are not linked then in such a situation you will not get interest on delay in refund because it is your mistake. Due to which the refund has been delayed.
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