| Question And Answer | |
|---|---|
| Subject: | Computation of interest under section 244A(1A) of the Act |
| Category: | Income-Tax |
| Querist: | Dhinesh |
| Answered by: | Law Intern |
| Tags: | additional interest u/s 244A(1A), Section 244A(1A) |
| Date: | August 31, 2025 |
Hi, Kindly clarify for the purpose of computing interest under section 244A(1A) of the Act whether the same should be calculated on the A- [Refund+244A(1) interest] or B – Refund (w/o Interest u/s 244A(1))
The additional interest u/s 244A(1A) is to be calculated on the excess tax and not the interest u/s 244A(1). The provision uses “in addition to the interest payable under sub-section (1)”, indicating that the additional interest under (1A) is computed on the principal and not on the interest referred to in ss (1) itself.
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