Section 98 - Amendment of section 244A. - Finance Act, 2023

Amendment of section 244A. 98 . In section 244A of the Income-tax Act, (a) in sub-section (1), in clause (a), after sub-clause (ii), the following proviso shall be inserted with effect from the1st day of October, 2023, namely: Provided that where refund arises as a result of an order passed by the Assessing Officer in consequence of an application made by the assessee under sub-section (20) of section 155, such interest shall be calculated at the rate of one-half per cent. for every month or part of a month comprised in the period from the date of such application to the date on which the refund is granted; ; (b) in sub-section (1A), the following proviso shall be inserted, namely: Provided that where proceedings for assessment or reassessment are pending in respect of an assessee, in computing the period for determining the additional interest payable to such assessee under this sub-section, the period beginning from the date on which such refund is withheld by the Assessing Officer in accordance with and subject to provisions of sub-section (2) of section 245 and ending with the date on which such assessment or reassessment is made, shall be excluded. .