Latest Expert Exchange Queries

GST Demo Service software link: https://ims.go2customer.com
Username: demouser Password: demopass
Get your inventory and invoicing software GST Ready from Binarysoft info@binarysoft.com
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
 
 
 
 
Popular Search: VAT RATES :: empanelment :: TAX RATES - GOODS TAXABLE @ 4% :: articles on VAT and GST in India :: cpt :: Central Excise rule to resale the machines to a new company :: ARTICLES ON INPUT TAX CREDIT IN VAT :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: ACCOUNTING STANDARDS :: form 3cd :: list of goods taxed at 4% :: TDS :: ACCOUNTING STANDARD :: due date for vat payment :: VAT Audit
 
 
« News Headlines »
 Income tax returns refunds: Here is where to file grievance
 Can the filling of GSTR-3B be avoided by filing GSTR-1, 2 & 3?
 CII seeks extension of time for filing GST returns
 A tax saver scheme with higher returns
 GST registration mandatory for TDS entities
 Govt rules out extension for filing GSTR-3B returns after December
 Tax department’s e-filing portal out of action for 2 hours
 Use ITR-2 to show salary and capital gains income
  TDS Applicability On Government Contracts Under Gst (Under Section 51 Of The Cgst Act, 2017)
  How to file ITR for FY 2016-17 and all the links you need
 All about E-way Bill under GST

Home Budget Interest on Tax Refund, Tax Due Should be Uniform
February, 18th 2015

Industry body Ficci or Federation of Indian Chambers of Commerce and Industry is batting for parity in interest rates on tax refunds and late tax payments. Currently, interest rate payable on late tax payment is double that what ordinary tax payers get on refunds for paying excess tax.

In the upcoming Budget, Ficci wants Finance Minister Arun Jaitley to take away the advantage of higher interest rates the income tax department currently enjoys.

"A uniform rate of 6 per cent per annum or 12 per cent per annum both for refunds and tax dues payable by the government and taxpayers respectively may be prescribed," the industry body said.

When the government pays the tax payer a refund with interest, the interest is calculated at 6 per cent per annum. However, for late payment of income tax to the government, it charges the taxpayer an interest rate of 12 per cent per annum.

When the tax paid by the taxpayer (could be in the form of advance tax or tax deducted/collected at source or self - assessment tax or payment of tax on regular assessment) is more than the required amount, the person is be eligible to claim refund of the excess tax paid by him.

Many times the taxpayer does not get the refund in due time; in such a case he is granted interest on delayed refund. Under Section 244A of the Income-Tax Act, a taxpayer is entitled to interest at the rate of 0.5 per cent for every month from the first day of April of the assessment year to the date on which the refund is granted.

However, there is a catch to this - no interest is paid if the refund amount is less than 10 per cent of the tax paid, an anomaly Ficci wants Mr Jaitley to address in the Budget.

"A proper mechanism or procedure needs to be put in place with accountability fixed on the tax department to ensure refunds are disbursed without time lag. Further a specified time limit should be provided to the revenue authorities to grant refund as per return of income or due to effect of rectification/ appellate order," Ficci said.

For the business class, it suggested Mr Jaitley introduce a mechanism in the Budget, where the refund due can be offset against the advance tax liability of the person.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Organic SEO Outsourcing Organic Search Engine Optimization Outsourcing Organic Website SEO Organic SEO India Website SEO India Organic Search Engine Optimization India Organic Internet SEO India Organic Web

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions