Section - 244A - Interest on refund due to deductor
The existing section provides
that an assessee is entitled to receive interest on refund arising out of excess payment of advance tax,
TDS etc. The amendment seeks to provide that where refund of any amount becomes
due to the deductor, such person shall be entitled to receive, in addition to
the refund, simple interest on such refund at the rate of 0.5% for every month
or part of the month from the date of refund claimed to the date on which
refund is granted. In case of an order passed in Appeal refund will be granted
from the date on which tax has paid to the date on which refund is granted.
The amendment will be effective
from 1st April 2017.