How the Upcoming Budget Will Impact the Income Tax Payers!
Increase in the rate of delayed refunds
A 12 percent interest to be paid on tax refunds made after more than six months and an interest of 18 percent after a delay of over a year has been proposed by the committee which is greater than the present percentage. At present, 6 percent for the whole delayed amount or half a percent every month in the maximum tax to be paid.
Additional interests to be paid on delayed refunds annually
Another recommendation which the committee has made will compel income tax payers to pay an additional interest on delayed refund at 0.5 percent per annum. The committee has also recommended that the refunds must be cleared within three months and in case of a failure this rule mentioned earlier will be subjected.
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