TDS done by the Ld. AO on the interest granted u/s. 244A(1) - ...

Interest from Section 244A(1) not taxable under India-Italy DTAA; AO must refund incorrectly deducted TDS.

January 31, 2023

Case Laws     Income Tax     AT

TDS done by the Ld. AO on the interest granted u/s. 244A(1) - taxability of interest on refund in terms of Article 12(3)(a) of the India- Italy DTAA - the interest in question received by the assessee u/s. 244A(1) from the Government of India will not be taxable. Consequently, no tax was required to be deducted thereon by the Ld. AO while remitting the said interest to the assessee and thus AO is directed to grant the refund of the TDS so done. - AT

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