Levy of Interest u/s 234B & 234C of Income-tax Act, 1961

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This discussion clarifies the calculation dates for interest under sections 234B and 234C of the Income-tax Act, 1961. For a company incorporated on 31st October 2018, interest under section 234B is calculated from 1st April 2019. Interest under section 234C is calculated from 1st October 2018, specifically from 31st October 2018 onwards, not the beginning of the financial year.

Jashpreet kour

Jashpreet kour (Querist)
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20 February 2020 If a company is incorporated on 31/10/2018 and file its Return of Income within due date, then whether Interest u/s 234B & 234C of the Income-tax Act, 1961 is required to be calculated only for 5 months or from the beginning of the Financial year.i.e from 01/04/2018.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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20 February 2020 From 31-10-2018 and onwards.

Jashpreet kour

Jashpreet kour (Querist)
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20 February 2020 Sir can you please suggest any case law on that issue which averred that Interest would be levied from 31.10.2018 & not from 1st April

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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21 February 2020 No need of case law because

* 234B is charged from 1-4-2019 (not from 1-4-2018) Please see subsection (1).

* 244C counts from 1-10-2018. Please see 1st proviso to the section.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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21 February 2020 Please read as 31-10- 2018 and not 1-10-2018.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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21 February 2020 Again 234C and not 244C. Error is regretted.

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