Applicability of Interest u/s 234A even after extension of due dates

This query is : Resolved

yogesh vijaykumar shah (Querist)
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24 November 2021 CBDT has exetended due dates for filing income tax returns from 31st Oct, 2021 to 15th Feb, 2022 for audit cases for A Y 2021-22. In such casea, if assessee fails to make the payment of Self Assessment Tax on or before 31-10-2021, whether interest will be charged u/s 234A of I T Act, 1961. If the company makes the payment of S A tax in full in the month of Nov, 2021, whether interest wil charged till Filing of Return. Kindly advise

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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24 November 2021 According to Circular No. 9 of 2021 Dated 20th May 2021 or Order [F.No.225 ... 2021- ITA-II] if the tax paid by the taxpayer is more than Rs 1 Lakh then for the intention of the section 234A due date extension is not applicable on him and Interest will be charged from 1st Aug 2021(Non-Audit Cases) or 1st Dec 2021(Audit Cases) according to the case might be but he can furnish the return up to extended the date.

Note: the interest shall be charged up to date of furnishing of the return.

If the taxpayer pays all the outstanding tax demand post to the last date but do not furnish the return:
In this scenario, the taxpayer shall be liable for the interest u/s 234A on tax payable till the date of filing the return.