https://www.taxtmi.com/article/detailed?id=106 Interest under section 244A on income-tax refunds is a statutory entitlement that must be reconciled and disclosed as income. Practical problems-late payments, absent computations, or adjustments by the assessing officer-can create uncertainty, but omission to account for interest can attract assessment additions and penalty as affirmed by Madras High Court. Where the mercantile system is followed, accrued interest to the year-end should be included; if the cash system is used, receipt-basis recognition requires clear disclosure and supporting reconciliation to avoid allegations of concealment. en-us Sun, 15 Jun 2008 00:00:00 +0530 Sat, 01 Jan 2011 14:05:32 +0530 TaxTMI RSS Generator https://www.taxtmi.com/article/detailed?id=106 Interest under section 244A on income-tax refunds is a statutory entitlement that must be reconciled and disclosed as income. Practical problems-late payments, absent computations, or adjustments by the assessing officer-can create uncertainty, but omission to account for interest can attract assessment additions and penalty as affirmed by Madras High Court. Where the mercantile system is followed, accrued interest to the year-end should be included; if the cash system is used, receipt-basis recognition requires clear disclosure and supporting reconciliation to avoid allegations of concealment. Articles Income Tax Sun, 15 Jun 2008 00:00:00 +0530 https://www.taxtmi.com/article/detailed?id=106