Annual Information Statement – Interest from income tax refund

Interest is paid on the income tax refund as per provisions of section 244A of the Income Tax Act, 1961. The present article covers the reflection and processing of ‘interest from income tax refund’ in Annual Information Statement (AIS).

Information source and AIS processing of ‘interest from income tax refund’-

Any interest received on an income tax refund is liable to be taxed under the head ‘Income from other sources’.

On processing the information, the interest amount received on the income tax refund will be taxable/ reflected under the head ‘income from other sources’ in AIS.

In case, in spite of receipt of interest, if the interest from income tax refund is displayed as NIL ‘0’ in Annual Information Statement (AIS) and Taxpayer Information Summary (TIS). Then, in such a case, the taxpayer is allowed to update the interest amount via AIS feedback based on actual interest received.