India - Income Tax Act 2010 - Saarc

S. 244 I.T. ACT, 1961 1.824the Central Government shall pay the assessee simple interest at 22 [fifteen] percent per annum on the amount directed to be refunded from the date immediatelyfollowing the expiry of the period of three months aforesaid to the date ofthe order granting the refund.Explanation.—If the delay in granting the refund within the period of threemonths aforesaid is attributable to the assessee, whether wholly or in part, theperiod of the delay attributable to him shall be excluded from the period forwhich interest is payable.](2) Where any question arises as to the period to be excluded for the purposes ofcalculation of interest under the provisions of this section, such question shallbe determined by the 23 [Chief Commissioner or Commissioner] whose decisionshall be final.24[(3) The provisions of this section shall not apply in respect of any assessmentfor the assessment year commencing on the 1st day of April, 1989 or anysubsequent assessment years.]Interest on refund where no claim is needed.25244. (1) Where a refund is due to the assessee in pursuance of an orderreferred to in section 240 and the 26 [Assessing] Officer does not grant therefund within a period of 27 [three months from the end of the month in whichsuch order is passed], the Central Government shall pay to the assessee simpleinterest at 28 [fifteen] per cent per annum on the amount of refund due fromthe date immediately following the expiry of the period of 29 [three] monthsaforesaid to the date on which the refund is granted.30[(1A) Where the whole or any part of the refund referred to in sub-section (1)is due to the assessee, as a result of any amount 31 having been paid by him afterthe 31st day of March, 1975, in pursuance of any order of assessment 32 or penaltyand such amount or any part thereof having been found in appeal or other22. Substituted for “twelve” by the Taxation Laws (Amendment) Act, 1984, w.e.f. 1-10-1984.Earlier “twelve” was substituted for “nine” by the Finance Act, 1972, w.e.f. 1-4-1972. Section84 of the Amendment Act, 1984 has clarified that the increase in the rate of interest willapply in respect of any period falling after 30-9-1984, and also in those cases where theinterest became chargeable or payable from an earlier date.23. Substituted for “Commissioner” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f.1-4-1988.24. Inserted, ibid., w.e.f. 1-4-1989.25. See rule 119A.26. Substituted for “Income-tax”, ibid., w.e.f. 1-4-1988.27. Substituted for “six months from the date of such order” by the Taxation Laws (Amendment)Act, 1970, w.e.f. 1-4-1971.28. Substituted for “twelve” by the Taxation Laws (Amendment) Act, 1984, w.e.f. 1-10-1984.Earlier, “twelve” was substituted for “nine” by the Finance Act, 1972, w.e.f. 1-4-1972, “nine”was substituted for “six” by the Taxation Laws (Amendment) Act, 1967, w.e.f. 1-10-1967and “six” was substituted for “four” by the Finance Act, 1965, w.e.f. 1-4-1965.29. Substituted for “six” by the Taxation Laws (Amendment) Act, 1970, w.e.f. 1-4-1971.30. Inserted by the Taxation Laws (Amendment) Act, 1975, w.e.f. 1-10-1975.31. For the meaning of the term “amount”, see Taxmann’s Direct Taxes Manual, Vol. 3.32. For the meaning of the expression “order of assessment”, see Taxmann’s Direct TaxesManual, Vol. 3.