Income Tax department will now add interest amount to a delayed refund made on excess Tax Deducted at Source (TDS) deductions and will also not litigate with the deductor on this issue in the future. Central Board of Direct Taxes yesterday issued a directive in this regard to the assessing
officers of the IT department. Latest communication is based on a 2014 Supreme Court order where the apex court had made it clear that the taxman is bound to pay interest on refund made under the TDS category. TDS is primarily deducted by the employer from the salary paid to an employee.