Tax deduction at source (TDS) is desirable on interest paid on income tax refund – as an alternative Central Government may pay interest at reduced rate and make interest tax free.

Tax deduction at source (TDS) is desirable on interest paid on income tax refund – as an alternative Central Government may pay interest at reduced rate and make interest tax free. https://www.taxtmi.com/article/detailed?id=1574 The author recommends making TDS applicable to interest actually paid on income tax refunds by empowering the Assessing Officer or refund banker to deduct tax at source at cheque issuance, using simple threshold based rates and administrative checks only of the interest amount at payment, thereby easing implementation under computerized refund processes and reducing advance tax timing mismatches. en-us Wed, 18 Jan 2012 07:04:19 +0530 Wed, 18 Jan 2012 07:04:19 +0530 TaxTMI RSS Generator Tax deduction at source (TDS) is desirable on interest paid on income tax refund – as an alternative Central Government may pay interest at reduced rate and make interest tax free. https://www.taxtmi.com/article/detailed?id=1574 The author recommends making TDS applicable to interest actually paid on income tax refunds by empowering the Assessing Officer or refund banker to deduct tax at source at cheque issuance, using simple threshold based rates and administrative checks only of the interest amount at payment, thereby easing implementation under computerized refund processes and reducing advance tax timing mismatches. Articles Income Tax Wed, 18 Jan 2012 07:04:19 +0530 https://www.taxtmi.com/article/detailed?id=1574