KESHAV JHUNJHUNWALA (ca final) (28 Points)
31 May 2012is Interest u/s 234 b c chargeable in case any assessee is claiming refund.
Suppose any assessee is having total tax payable of rs. 64000/- and he is having a tds amount of rs. 64000/-
Advise in this case regarding interest u/s 234 B C, assuming he has not paid any advance tax in the year...
Giridhar S Karandikar
(Team Lead)
(7553 Points)
Replied 31 May 2012
In case of salaried employee, there is no advance tax payable by the assessee as the employer deducts tax at source from his income provided that the employee has disclosed all the incomes under different heads earned by him. if the employee does not disclose his income to the employer then he has to assess his tax liability and pay the advance tax if he is required to pay.
However in case of refund, as the taxes paid are more than the tax paayble so the excess is returned back to teh assessee. So I dont think that the interest u/s these three section wud be chargeable.
CA.Varalakshmi.M
(Manager-Finance)
(482 Points)
Replied 31 May 2012
Yes,when there is no revenue loss to the department ,it doesnt charge any interest.
Sonam Bidasaria
(CA)
(770 Points)
Replied 31 May 2012
The assessee is not required to pay ant any advance tax and hence interest u/s 234B and 234C cannot be levied.
CA Deepak Garg
(Consulting )
(95 Points)
Replied 31 May 2012
Dear Friend,
In my opinion even interest u/s 234A shall not be levied in case of late filling of ROI, because while calculation interest u/s 234A it shall be Nil due to the amount of refund.
Reason is that, All tax payable is paid upto the due date.
TRILOCHAN
(SENIOR ACCOUNTANT)
(698 Points)
Replied 31 May 2012
Not liable to pay Interest U/s 234 A/B/C
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