sub: Interest on delayed payment of advance tax under section 234B & 234 C vis a vis Interest on refund generated after deletion of fake demand generated by Income tax department .
Sir,
With regard to above mentioned subject it is submitted that :
- Presently Income taxes are levied separately for every assessment years.
- Interest on delayed payment of advance tax & self assessment year is charged @ 12% without considering the previous years unpaid refunds if are available for earlier assessment years.
- In many of the cases on similar issues every year demands are generated by Income tax department by making additions which are subsequently deleted by appellate authorities.
- Assessee is forced by Income tax department for depositing of demands and finally the amount paid against forced demand is converted in to refunds.
- The refunds which are generated are not paid because meanwhile on similar issues demand is again generated by income tax department for next year.
- Suppose after some years, because of nil addition if refunds are generated that are paid with interest @ of 6%.
- In this case, one side department kept money with them for many years and refunded the same after settlement of all demands with interest @ 6% other side they charged interest @ 12% on delayed payment of advance tax.
- Because of all above assessee loose differential interest @ 6% ( 12%-6%).
Looking to all above, please clarify is there any provision presently by which assessee donot loose differential interest. Thanks
Anant Luhdia
CAclubindia
