Whether interest is chargeable on excess refunds u/s 234D?
Ans: Vide the Finance Act, 2003 a section 234D has been introduced which provides for charging of interest on excess refund. As per this section, where any refund is granted to an assessee and no refund is found to be due on regular assessment or the amount refunded u/s 193(1) exceeds the amount refundable on regular assessment, the assessee shall be liable to pay simple interest @ 0.67% (2/3rd ) on the whole or excess amount so refunded for every month or part thereof from the date of grant of refund to the date of regular assessment.
