TaxTMI 
TaxTMI 
Interest on delayed refund
09 Jul 2010 
4 Replies 
2114 Views Asked by
Interest on delayed tax refund can be claimed where department wrongfully adjusted refund, pending till actual payment.
Seek rectification to reverse the incorrect adjustment of the refund by submitting a rectification application supported by the DDT challan showing DDT was paid separately, and claim statutory interest on the full refund amount from the prescribed commencement date until actual payment, including interest on interest where applicable. (AI Summary)
Seek rectification to reverse the incorrect adjustment of the refund by submitting a rectification application supported by the DDT challan showing DDT was paid separately, and claim statutory interest on the full refund amount from the prescribed commencement date until actual payment, including interest on interest where applicable. (AI Summary)
We had filed income tax return for A.Y. 2008-09 with refund of Rs. 41,24,500 and received Income tax assessment order and part refund of Rs. 134000 on 5th May 2010 related with our A.Y. 2008-09 and our remaining part refund of Rs. 39,90,500 has adjusted against payment of Dividend distribution tax whereas we had paid DDT through separate challan now we are filing rectification application. Kindly advice whether we should apply for interest on Rs. 39,90,500 which IT Dept. has not paid us and wrongly adjusted, if yes then how?