It is proposed to make the following amendments under Section 244A in relation to interest on refund:
| Particulars | Interest rate | From Date | To Date | |
| Return filed after the due date | 6% | Date of filing of return | Date on which refund is granted | |
| Return filed on or before the due date but taxes paid after due date | 6% | Date of payment of tax | Date on which refund is granted | |
| Return filed and taxes paid on or before the due date | 6% | Date of filing of return | Date on which refund is granted | |
| Refund arising out of appeal effect being delayed beyond the time limits prescribed under Section 153 (5) | 9% | If Assessing Officer does not seek for extension | Additional 3% interest from date of expiry of time allowed under Section 153 (5) | Date on which refund is granted |
| 9% | If Assessing Officer seeks for extension | Additional 3% interest from date of expiry of such extended period | Date on which refund is granted | |
It is further proposed that for adjustment of payments received against the taxes due, TDS, TCS and advance tax shall be adjusted first.
The above amendments shall ensure timely filing of returns and reduced litigation matters viewing the additional burden of interest on department on further appeals.
Passing on the burden of additional interest on delayed refunds to the concerned Assessing Officer is a huge step in creating a more accountable bureaucracy and is certainly laudable.
