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Sec 234 interest in case of refund

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This query is : Resolved

R.S.Vishnu Kumar (Querist)

26 October 2009 It is spelt out in the sec 234 (A,B&C) that interest shall be calculated on Tax Payable minus advance tax, tax deducted at source. In case of assessees having refund what would be the interest calculation under section 234A and 234B if such assessee has filed return after due date and even the advance tax paid by him is less than 90% of total tax liability but having tds credit which he has obtained in march month resulting in refund.

Whether Interest calculation is applicable in refund cases? Help me out in this issue.

CA. Vinod Pandey

CA. Vinod Pandey (Expert)

26 October 2009 Interest u/s 234A is calculated on amount of tax determined u/s 143(1), 143(3)/144/147/153A minus TDS & Advance tax. Therefore, assessee not need to do this untill they (department) demand for tax.
Further, having refund due to TDS deducted then no interest to be charged u/s 234B & C.
lets see what other experts say.

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