India - Income Tax Act 2010 - Saarc

1.825 CH. XIX - REFUNDS S. 244Aproceeding under this Act to be in excess of the amount which such assessee isliable to pay as tax or penalty, as the case may be, under this Act, the CentralGovernment shall pay to such assessee simple interest at the rate specified in subsection(1) on the amount so found to be in excess from the date on which suchamount was paid to the date on which the refund is granted :Provided that where the amount so found to be in excess was paid in instalments,such interest shall be payable on the amount of each such instalment or any partof such instalment, which was in excess, from the date on which such instalmentwas paid to the date on which the refund is granted :Provided further that no interest under this sub-section shall be payable for aperiod of one month from the date of the passing of the order in appeal or otherproceeding :Provided also that where any interest is payable to an assessee under this subsection,no interest under sub-section (1) shall be payable to him in respect of theamount so found to be in excess.](2) Where a refund is withheld under the provisions of section 241, the CentralGovernment shall pay interest at the aforesaid rate on the amount of refundultimately determined to be due as a result of the appeal or further proceedingfor the period commencing after the expiry of 33 [three months from the end ofthe month in which the order referred to in section 241 is passed] to the date therefund is granted.34[(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.]35[Interest on refunds.36244A. (1) 37 [Where refund of any amount becomes due to the assessee underthis Act], he shall, subject to the provisions of this section, be entitled toreceive, in addition to the said amount, simple interest thereon calculated in thefollowing manner, namely :—(a) where the refund is out of any tax 38 [paid under section 115WJ or]39[collected at source under section 206C or] paid by way of advancetax or treated as paid under section 199, during the financial yearimmediately preceding the assessment year, such interest shall be33. Substituted for “six months from the date of the order referred to in section 241” by theTaxation Laws (Amendment) Act, 1970, w.e.f. 1-4-1971.34. Inserted by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989.35. Inserted, ibid.36. See also Circular No. 20D(XXII-22), dated 20-8-1968 and Instruction No. 2/2007, dated28-3-2007. For details, see Taxmann’s Master Guide to Income-tax Act.37. Substituted for “Where, in pursuance of any order passed under this Act, refund of anyamount becomes due to the assessee” by the Direct Tax Laws (Amendment) Act, 1989,w.e.f. 1-4-1989.38. Inserted by the Finance Act, 2005, w.e.f. 1-4-2006.39. Inserted by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989.