Interest under section 234B(3)

This query is : Resolved

Mayank Srivastava (Querist)
Follow

16 March 2017 An assessee who has filed return for the AY 2013-14 and deposited more than 90% of tax as advance tax and accordingly interest under 234B was not charged at the time of filing of original return . Later on due to search this return is again assessed under section 153A and the original assessed tax is increase in the order under 153A , however the advance tax deposited is still more than 90% of assessed tax under 153A. whether assessee is liable to pay interest under section 234B(3) on the increased amount.

CA Chandan Sharma

CA Chandan Sharma (Expert)
Follow

16 March 2017 90% already paid-Section 234B(3) of the Income Tax Act, 1961 not applicable

Mayank Srivastava

Mayank Srivastava (Querist)
Follow

16 March 2017 Despite of the fact there is nothing mentioned in section 234B(3) regarding non applicability if more than 90% paid.

CA Chandan Sharma

CA Chandan Sharma (Expert)
Follow

16 March 2017 Please refer text from section 234B(3)”...the amount on which interest was payable in respect of shortfall in payment of advance tax for any financial year under sub-section (1) is increased, the asssessee shall be liable to pay.....”

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

Summarize this with AI

ChatGPT Perplexity Claude Google AI Grok