Re: Interest u/s 244A in VSV

The Assessee has received refund earlier with interest.
Q1. How to adjust the refund received in VSV form – since there is no challan number for the same. Should it be directly reduced from TDS claimed ?

Q2. What id the amount of refund that should be adjusted:
1) Refund + interest on refund or

2) the refund tax amount excluding int u/s 244A ?

The Act is silent on this issue; it can be assumed that the interest does not have to be refunded. As the collection only refers to disputed tax amount and waives interest. If the interest is  granted the revenue may pass an order for refund of interest . Our advice will be follow the method which is more beneficial to the assessee.  In case you desire to have a specific guidance  , you may approach the designated authority , they will be in a position to give the reply as per departmental view on the subject .

 

 

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