ITR
Interest on income tax refund shown in AIS
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Facts
Interest received on an income tax refund is taxable as income from other sources in the year received. It shows in AIS from the department's own data.
Provisions and law
- Sec 285BB (now Sec 510)Annual Information Statement of a taxpayer's reported transactions and taxes
- Sec 244A (now Sec 437)Interest on refunds
Analysis
If your refund of ₹60,000 came with ₹3,000 of interest in FY 2025-26, report ₹3,000 as other income for AY 2026-27. The refund itself is not income, only the interest. People often miss this and get a small demand later. Check the refund intimation for the interest amount.
Conclusion
- Check the refund intimation for the interest part
- Report the interest in Schedule OS
- Do not report the refund amount itself
- Keep the intimation
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