One of my client Demand order arise on Salary income for the assessment year 2009-10 on return because of Interest u/s 234A,234B,234C was not paid on the date of return filed & amount of demand Rs.4040/- arise & demand notice say that you are also liable to pay simple interest @ 1% for every month or part of the month for the period of default in accordance with section 220(2) of Income Tax Act 1961.
So I want to know that how interest I should calculate on the amount of interest 234A,234B,234C.
I think that interest on Rs. 4040/- would be calculate from the date to till date
return was not filed by me. Please give your valuable answer so that I will calculate interest.
CAclubindia
