Section 234a and 234b interest liability

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This query is : Resolved

ARTHI (Querist)

20 December 2014 Dear Friends / Experts,

Please guide me on the following, IF POSSIBLE:

Assessee (Individual) is yet to file ITR for AY 2013-14, whose Due Date is 30th September.

Assessee computed the Tax and Interest under Section 234A, 234B and 234C till August 2014 and paid the amount in August 2014 itself.

There is no liability on account of Tax and Interest for the Assessee, if he had filed his Return in August 2014 itself.

Now, while filling the Income Tax Return (Excel Utility), I noticed that there seems to be Tax Liability for FOUR months (Sep to Dec 2014) on account of Section 234A and Section 234B (Note: 234B Additional Interest on account of 234A Interest for FOUR months).

Query

I need to know whether the Income Tax Return (Excel Utility) Calculation is correct for the FOUR MONTHS, however, there is no liability from 01/09/14 on account of Tax and Interest.

Please reply.

Thanks.

Deepak Agrawal

Deepak Agrawal (Expert)

20 December 2014 Hallo..
interest calculated by xls utility is correct as interest u/s 234A is payable upto date of filling of income tax return.

and interest u/s 234B is payable if you have not paid your advance tax liabilities till end of the p.y.

CA Kumar Mukesh

CA Kumar Mukesh (Expert)

21 December 2014 Dear Arthi Interest under section 234A will levied at the rate 1% from the date due date of filling of Return of income 30th September 2013 to till the date of date August'14.
Even a singe day default counts one month.

Therefore logics in excel Excel utility is correct

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)

21 December 2014 The section is worded to substantiate the excel utility calculation as correct,whereas Supreme Court in Dr. Pranoy Roy's case decided otherwise.