Interest on refund where no claim is needed - Section 244 - Income Tax - Ready Reckoner - Income Tax

Interest on refund where no claim is needed [ Section 244 ] Where a refund is due to the assessee in pursuance of an order referred to in section 240 and the Assessing Officer does not grant the refund within a period of three months from the end of the month in which such order is passed, the Central Government shall pay to the assessee simple interest at 15% per annum on the amount of refund due from the date immediately following the expiry of the period of three months aforesaid to the date on which the refund is granted. [ Section 244(1) ] Where the whole or any part of the refund referred to in section 244(1) is due to the assessee, as a result of any amount having been paid by him after the 31st day of March, 1975 , in pursuance of any order of assessment or penalty and such amount or any part thereof having been found in appeal or other proceeding under this Act to be in excess of the amount which such assessee is liable to pay as tax or penalty, as the case may be, under this Act, the Central Government shall pay to such assessee simple interest at the rate of 15% per annum on the amount so found to be in excess from the date on which such amount was paid to the date on which the refund is granted. 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 part of such instalment, which was in excess, from the date on which such instalment was paid to the date on which the refund is granted. that no interest under this sub-section shall be payable for a period of one month from the date of the passing of the order in appeal or other proceeding . Where any interest is payable to an assessee under this sub-section, no interest u/s 244(1) shall be payable to him in respect of the amount so found to be in excess. [ Section 244(1A) ] Where a refund is withheld under the provisions of section 241 , the Central Government shall pay interest at the rate of simple interest at 15% per annum on the amount of refund ultimately determined to be due as a result of the appeal or further proceeding for the period commencing after the expiry of three months from the end of the month in which the order referred to in section 241 is passed to the date the refund is granted. [ Section 244(2) ] The provisions of this section shall not apply in respect of any assessment for the assessment year commencing on the 1st day of April, 1989 , or any subsequent assessment years. [ Section 244(3) ]