234a

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

27 September 2014 As per the recent notification issued by CBDT, interest would be payable u/s 234A if tax is not paid at the time of filing returns. 234A can be invoked only if the tax liability persists at the time of filing returns. If the due date has been postponed to 30.11.14 and if the tax is paid on or before that date, how can 234A be invoked?

Nikhil Kaushik

Nikhil Kaushik (Expert)
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27 September 2014 this is per directions of the Gujarat High Court wherein the court directed CBDT to extend due date except for the explanation 1 to 234A. The department has the discretion to give partial reliefs. So it did.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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28 September 2014 Due date of return filing, for the purpose of 234A, is not extended vide clause 7 of the CBDT order dated 26/09/2014. Therefore, if self assessment tax is fully paid on or before 30.9.2014, and return is filed after that date, interest u/s 234A can be levied on a conjoint reading of the said order with section 234A.

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