The Income Tax (I-T) authorities have finally released Rs 2.77 lakh refund of 73-year-old S.C. Chaturvedi who had been making the rounds of the department since February.
The refund, for assessment year 2008-2009, belongs to his son Ajay (42) who works as a software engineer in the USA and who has given the power of attorney to his father.
Chaturvedi received the cheque on Tuesday, after HT, in its August 7 issue, highlighted the hardships faced by him despite the department writing to him in February that the amount (Rs 2.77 lakh) has been released.
The department had written to Chaturvedi that the refund has been released on February 8. However, it had not reached his bank account until recently.
HT had reported how Chaturvedi’s many rounds of the I-T office at Bandra Kurla Complex and Churchgate had all gone in vain.
However, the department has paid the amount that was mentioned in its February letter. According to the rules, the department has to pay six per cent per annum simple interest on refundable amount, from the day excess tax is deducted, till it (refund) is actually paid.
Though the amount of Rs 2.77 lakh is including interest till January this year, the department failed to pay interest for the months of February to July.
“As per this, he is entitled to three per cent additional interest on this amount,” a senior I-T official said.
Charturvedi said he has written to the department asking whether it would pay the interest for remaining period (February to July).