Interest u/s 234a

1580 views 12 replies

A person has filed his Income Tax Return for A.Y. 2011-12 on 31st December, 2011. Due date u/s 139(1) for him was 31st July, 2011. His tax liability was Rs. 500 which he deposited on 31st July, 2011.

 

Now please tell me that whether he is liable to pay Interest u/s 234A or not?

Replies (12)

Niteshbhai !!!

As the person mentioned in question has deposited his tax liability on time !!! so no INTEREST u/s 234a is applicable !!!

Agreed with Keval ji.

 

I too agreed with keval ji, as there is no question fo delay in payment of Tax the assessee is not liable to pay interest u/s 234A. 

Hi,The corollary is that even though a person may have paid the full tax before the due date for filing the return, merely because he delays the filing of the return, he would be visited with interest even on the amount which has already been paid.And also SEC234A is interest for defaults in furnishing return of income but not for late deposit of tax with  the It dept.

Mr. Nitesh Gupta  person have already tax deposit on 31.07.2011, i think tax laibiltiy is over so no impose u/s 234A.

Thanks

With regards

Ramanuj

 

 

 

If the assessee has paid self assessment tax before due date of filing return of income then even if return is filed after due date, interest u/s 234A will not be chargable.

This view is supported by following judgements:

CIT v. Pranoy Roy [2009] 179 Taxman 53 (SC) & Milan Enterprise v. CIT (2005) 95 ITD 18 (ITAT Mumbai Bench)

Originally posted by : CA Neil Ganatra

If the assessee has paid self assessment tax before due date of filing return of income then even if return is filed after due date, interest u/s 234A will not be chargable.

This view is supported by following judgements:

CIT v. Pranoy Roy [2009] 179 Taxman 53 (SC) & Milan Enterprise v. CIT (2005) 95 ITD 18 (ITAT Mumbai Bench)

Dear Nitish,

Section 234A is applicable due to late filing of return. There is no connection with payment of tax.

Hence interest will be charged u/s 234A  even the tax has been deposited in time........

Interest under section 234a is payable if there is any statutory due and not for late filing of return. Interest and penalty for late filing of return are two separate things. a case law has also been judged on this same   ground by supreme court.

INTEREST U/S 234A WILL NOT BE APPLICABLE HERE....

AS TAX PAYABLE IS DOPOSITED BY ASSESSEE ON TYM......

 

As the tax liability is considered from the point of view of 31st March, and since taxes are paid on 31st July only, there is a certain amount of interest payable for default in furnishing return of income.

Interest u/s 234A would not be payable when the SA tas is paid on or before the due date of filing the return evenif return is filed after the due date. sine u need to calculate interest on tax payable and since there was no tax payable as on the date of filing the return, the interest in this case will nt b applicable.

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
Featured 15 June 2026
Senior Auditor

N. Dhawan & Co

New Delhi

CA Inter

View Details
Company
01 June 2026
Audit, Taxation & Compliance Executive

R P S K & Associates

Nashik

CA Inter

View Details
Company
19 June 2026
Accounts Executive

Getfive Advisors Pvt. Ltd.

Ahmedabad

CA Inter

View Details
Company
ARTICLESHIP 20 June 2026
Articleship

RB KESHRI & CO

Mumbai

B.Com

View Details
Company
ARTICLESHIP 27 May 2026
CA Article Trainee

Rahul Dang & Associates-Chartered Accountants

Pune

CA Inter

View Details
Company
25 June 2026
AUDIT MANAGER

JDAS & ASSOCIATES

New Delhi

CA

View Details
Company
22 June 2026
Finance Manager- Chartered Accountant

Triveni Turbine Limited

Bengaluru

CA

View Details
Company
ARTICLESHIP 31 May 2026
Article Assistant

KPRS And Associates

New Delhi

CA Inter

View Details