Q & A: Interest u/s 234A
P.D.RUNGTA
Query: Interest u/s 234A
Dear All
I would request to clarify understaed issue. Sec 234A states that
(1) Where the return of income for any assessment year under sub-section (1) or sub-section (4) of is furnished after the due date, or is not furnished, the assessee shall pay ( be liable to pay simple interest at the rate of one] per cent for every month or part of a month comprised in the period commencing on the date immediately following the due date, be liable to pay simple interest at the rate of and,(a) where the return is furnished after the due date, ending on the date of furnishing of the return;
In case return is furnished on 31 st march,13 for the the a/y 12-13, but self assessment tax has not been paid,whether assessee is liable to pay interest up to march 31st i.e date of filing of the return or is laible to pay interest up to the date of payment of self assessement tax.
Thanks and Regds > > CA,R.K.Roongta > > 9830044605 >
Reply:1
Dear Roongtaji,
Can you file your Return without paying Self Asst Tax ? I mean if any tax is payable as per computation made by you at the time of filing Return, then I think that you need to pay the tax due before you file Return.
Regards, Vinod K Dubey.
Reply:2
Dear Mr. Roongta,
Section 234A provides for interest in case of default in furnishing return of income as provided in the Income-tax Act (the Act). Section 234A(1) effectively provides that if the return of income u/s.139(1)/(4) or in response to notice u/s.142(1) is furnished after the due date (or is not furnished), the assessee is liable to pay simple interest @ 1% for every month or part of a month for the period of delay. Such interest is payable on the amount of tax on the total income as reduced by the advance tax, if any, paid and TDS (or TCS).
In my views, since section 234A deals with interest for default in furnishing of return of income so it should be charged only up till date of filing of return of income.
However, the assessee may also have to pay interest u/s 234B for default in payment of advance tax if it was paid less than 90% of total tax liability (after deducting TDS) as on 31st March, 2012 or Interest U/s 234C for deferment in payment of advance tax, as the case may be.
THANKS & REGARDS, CA PIYUSH KUMAR DHANDHANIA|PARTNER|DHANDHANIA & CO. ------------------------------------------------------------------------------------------------------------------------- CITY CENTRE, 19, SYNAGOGUE STREET, ROOM NO. 420, KOLKATA-700 001 ( 033-2210-6605(O) |+91-903-8500-688(M) - dhandhan...@gmail.com | dhandhan...@rediffmail.com
Reply:3
Dear dubey Ji
I humbly beg to disagree as I myself have filed at client's insistence return a self asstt tax payable return in ay 12-13 and they deposited later on with intt; which was calculated till the date of its deposition.
Thanks Advocate Arijit Mitra
Reply:4
Dear Roongtaji,
Further, we need to keep in mind Section 140(3) read with Section 220 of I.T.Act... which will become applicable... in this case..
Please also note the proposal in Budget 2013, amendment in Sec.139(9),
i.e The Return may become Invalid and it shall be assumed that the assessee had failed to furnish the Return...
Best Regards,
Praveen Khemka
SPK CONSULTANTS
9831041880
Reply:5
Agreed with Mr. Dhadhania.
With regards, CA. Saptarshi Deb Barman (Partner) SDB & Associates
Reply:6
Dear Mr. Rungta,
Interest U/s 234A is payable for the period from the month next to the due date of filing the return to the date the return was filed. So in all cases it will be payable till March 13 only whether you paid it on the date of filing or after 31st March 13. But please note that you are not eligible to pay the due interest or any other tax amount as self assessment tax after filing your return. Such payment should be made under Regular Assessment.
Regards J P Agarwal
Reply:7
Dear Mr. Roogta
This is in reference to your doubts on sec 234A. Please note that interest u/s 234A is payable on non filing of IT return . Although you are required to pay all your self assessment tax before filing of return otherwise ITO has every authority to declare the return defective. but even though you have filed the return within due date without paying self assessment tax, the liability for interest u/s 234A does not arise. please also refer the case of scrutiny, where ITO add back expenses and liability for tax is raised. no interest is being charged under section 234A.
Regards
CA Arvind Gopalka 525 Marshall house, 33/1 N.S.Road , Kolkata-700001 033-22315284
CA Pramod Dayal Rungta M.Com.,LL.B.,ACMA.,DISA(ICAI).,FCA
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devendr...@gmail.com
I'm a salaried individual with some incomes from other sources too. I've completed my self assessment using ITR2 and paid (300) self-assessment tax of Rs. 1790 online on the 31st of July 2013. However, I've not submitted my returns to date.
Today, 23rd Jan 2013, when I updated the return filing date as today's date in the ITR2, it says I need to pay Rs. 110 for default in furnishing the return (section 234A). I now want to pay this Rs. 102 online and submit my returns.
Should I use (300) Self Assessment Tax for while making the online payment from the income tax site?
Regards
Dev