I earned salary from Mar2019 till Aug2019 on company payroll. Further I was extended on contract from Sept2019 till Mar2020. I filed the ITR on 12 Dec 2020, before due date for AY20-21. I got notice of defective return on 18Feb2021 and I filed revised ITR on 3Mar2021 and paid additional tax on contractual income under 44ADA-presumptive. However, the interest are shown now under 234A, 234B and 234C.
If I filed before due date why 234A?
How/fromwhen 234B and C comes into picture?
Hello Ankush,
Pursuant to CBDT notification 35/ 2020 dated 24 June 2020, interest under Section 234A of the Income Tax Act is applicable in cases where self-assessment tax payable is more than Rs.100,000. If you have paid SA tax in excess of Rs. 1 lakh, interest u/s 234B would be applicable from 1 December 2020 till the date of filing of return at 1% per month or part of the month.
Regards,
Manoj
| Originally posted by : Manoj B. Gavali | ||
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Hello Ankush, Pursuant to CBDT notification 35/ 2020 dated 24 June 2020, interest under Section 234A of the Income Tax Act is applicable in cases where self-assessment tax payable is more than Rs.100,000. If you have paid SA tax in excess of Rs. 1 lakh, interest u/s 234B would be applicable from 1 December 2020 till the date of filing of return at 1% per month or part of the month. Regards, Manoj |
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Thanks for the response Manoj.
I believe there was further extension till 32st Dec2022 for ITR filing, CBDT notification: Notification No. 88/ 2020/ dated 29th October, 2020.
So, will that not mean ITR can be filed by 31st Dec without having implications of 234A irrespective of SA less/more than 1L?
During my correction of defective return I had to pay more than 1 L tax. But what should be the start start date for 234B, 1 April 2020 or Dec2020/Jan2020?
Same case for 234C?
CAclubindia
