Tax on the refund amount?

Ask the Community Income Tax
1

Hi,

Will I have to pay tax on the refund amount?

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2

We don’t have to pay Tax on refund of TDS.

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3

No, there will not be any taxes on refund amount.
Since it is the excess tax contributed, Refund will not attract the taxes.

Instead Income tax department will give interest on the refund amount for the period it gets delayed.
This is payable by income tax department mandatorily, if the refund is 10% or more of tax paid,

Interest will be paid at 0.5% per month or part of the month on refund amount.

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