INT U/S 234A

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This discussion clarifies the application of interest under section 234A for delayed income tax return filings, particularly for non-audit cases. Interest is generally applicable if the tax liability exceeds ₹1 lakh and the return is filed after 31st July. While paying tax before the deadline is crucial, paying it after 31st July, even before filing, can still trigger interest charges under sections 234A and 234B.

MAKARAND DAMLE

MAKARAND DAMLE (Querist)
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01 September 2021 Interest u/s 234A for delay in filing of Return of Income is getting calculated in case of non audit cases returns to be filed by 30th September

What can be done to rectify above and file return of income

CMA Poornima Madhava

CMA Poornima Madhava (Expert)
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01 September 2021 If the tax liability is >₹1 lac, then interest u/s234a will be applicable if ITR is filed after 31st July 2021.
In other words, interest u/s 234a is waived off only when tax liability is up to ₹1 lac.

MAKARAND DAMLE

MAKARAND DAMLE (Querist)
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01 September 2021 S A Tax is already paid on 27.08.21
still interest u/s 234A and 234B is calculated
Is it correct

CMA Poornima Madhava

CMA Poornima Madhava (Expert)
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01 September 2021 Yes, if SAT was paid before 31st July, then interest would not have been applicable because such payments would be considered as advance tax. Since tax is paid after 31st July, interest would apply.

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