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Regarding Interst

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Querist : Anonymous

Querist : Anonymous (Querist)

01 February 2011 I had a great doubt regarding Interest.

Sec 234 A .

Why interest is collected under this section only when there is tax payable.

why the interest is not allowed on Nil tax cases? anyways its on delayed return, doesnt it meant injustice, one bears the fruit & other has to face it in case of belated returns.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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01 February 2011 Your concern with tax payers is highly appreciated.

Had the FM of our country thought about the honest tax payers, black money lying in Swiss Banks would have come in India through proper tax route and not through Diversions like proposed amnesty schemes.

In case of Nil Returns, since there is Zero tax, mathematically interest amount will also be Zero.

In case of Refunds , IT Department is granting interest at half rates for almost half the period it retains the amount.

Any way, Its our duty to pay taxes in time like an honest tax-payer.

(let them face the results of their misdeeds, who do not pay taxes well in time.)

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