The Income Tax (I-T) department will now add interest amount to a delayed refund made on excess tax deducted at source (TDS) cuts and will also not litigate with the deductor on this issue in the future, a latest directive has said. The Central Board of Direct Taxes (CBDT) has issued a directive in this regard to the assessing officers of the I-T department based on a 2014 Supreme Court order, where the apex court had made it clear that the taxman is “bound” to pay an interest on refund made under the TDS category. TDS is primarily deducted by the employer from the salary paid to an employee. “In view of the judgment of the apex court, it is settled that if a resident deductor is entitled for the refund of tax deposited under Section 195 (other sums) of the Act (Income Tax Act), then it has to be refunded with interest under section 244A from the date of payment of such tax,” the CBDT communication issued on Tuesday said. The CBDT has further directed that “accordingly,