Interest U/s 234a

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

10 August 2010 I have being asked to pay Interest u/s 234A of56/- by assesment order for ay 09-10 .I have paid all my tax dues and also have TDS being deducted by the party .Whether I have to pay This amount or not bcoz this is less than100/-

Shudhanshu Agrawal

Shudhanshu Agrawal (Expert)
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10 August 2010 Interest u/s 234A is levied when tax is deposited after the date of ITR filing i.e. 31st July. If any order is passed agianst you then you have to pay the interest on it, if it is rightly calculated.

I dont know why you are saying that the amount is below 100 so there is no need to pay tax. As per Section 288B rounding off tax is done to nearest multiple of ten and not hundred

CA. Pradeep Nayak

CA. Pradeep Nayak (Expert)
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10 August 2010 Probably you had filed your return after the due date without considering interest on the tax due. When a demand notice is issued, it has to be paid whatever may be the amount demanded.

If you feel that the interest has been wrongly charged to you, you may file a rectification petition u/s 154.

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