TaxTMI 
TaxTMI 
TaxTMI 
Interest on income tax refund .. is it taxable...if so.. under which head ? As income tax along with its interest is disallowed specifically..logically & acco. to matching concept interest on refund of income tax should be exempted...is it right ?
Interest on Income Tax Refund
Dinesh Sagade
Interest on Income Tax Refund is Taxable: Classified as 'Income from Other Sources' Under Income Tax Act A participant inquired whether interest on an income tax refund is taxable and, if so, under which category. Two respondents clarified that according to the Income Tax Act, the interest on income tax refunds is indeed taxable and should be classified under 'Income from Other Sources.' (AI Summary)