Question

What is the treatment for refund for tax?
Cash flow statement

Answer 1

Answer:

Amount of income tax refund corresponds to the excess tax that was paid by you, and thus not considered as an income. Hence, it is not taxable. However, the interest received over the income tax refund is considered as an income and is subjected to income tax as per the applicable tax slab.

Answer 2

Answer:

Solution : It will be shown as outflow under 'cash flow from investing activities'