Income Tax Return

This query is : Resolved

Krishna (Querist)
Follow

29 July 2010 Dear Sirs,

x is a individual person who pay his I.T. for assesment year 2010-11 on 30th July 2010 but he did nt file his return on 31st july then what will be interest and penality for the same ??

Thanks
Krishna

CA. Pradeep Nayak

CA. Pradeep Nayak (Expert)
Follow

29 July 2010 There is no penalty.

Even though tax was paid on 30th July, interest u/s 234A @ 1% per month will be applicable from 1st April till the date return is actually filed.

CA. BIJENDER KR. BANSAL

CA. BIJENDER KR. BANSAL (Expert)
Follow

29 July 2010 agreed

CA Vijay Kumar Gupta

CA Vijay Kumar Gupta (Expert)
Follow

29 July 2010 No interest.but penalty u/s 271F of I. T.Act,1961 if return is not filed on or before 31-03-2011.

CA Vijay Kumar Gupta

CA Vijay Kumar Gupta (Expert)
Follow

29 July 2010 Difference of opinion with the Experts
no interest as per decision of SC judgement in the case of CIT vs Dr. PRANNOY RAO(2009) 179 TAXMAN 53(SC)

CA. Pradeep Nayak

CA. Pradeep Nayak (Expert)
Follow

29 July 2010 Interest u/s 234A is for default in furnishing the return of Income and not for default in payment of taxes.

As there is a default in furnishing the return, interest u/s 234A should be applicable. However the aforementioned Supreme Court ruling states otherwise.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now