Section 78 - Amendment of section 244A. - Finance Act, 2017

Amendment of section 244A. 78. In section 244A of the Income-tax Act,- (i) after sub-section (1A), the following sub-section shall be inserted, namely:- (1B) Where refund of any amount becomes due to the deductor in respect of any amount paid to the credit of the Central Government under Chapter XVII-B, such deductor shall be entitled to receive, in addition to the said amount, simple interest thereon calculated at the rate of one-half per cent. for every month or part of a month comprised in the period, from the date on which (a) claim for refund is made in the prescribed form; or (b) tax is paid, where refund arises on account of giving effect to an order under section 250 or section 254 or section 260 or section 262, to the date on which the refund is granted. ; (ii) in sub-section (2),- (a) after the words to the assessee , the words or the deductor, as the case may be, shall be inserted; (b) after the word, brackets, figure and letter or (1A) , the word, brackets, figure and letter or (1B) shall be inserted.