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Interest u/s 234B and 234C for Senior Citizen

SARVESH PRABHU (Student CA IPC / IPCC) (23 Points)

28 September 2021

If an assessee is a senior citizen(completed 60 years in the month of Nov 2020), with only salary and bank interest income, want to file income tax when his liability after TDS is more than ₹1 Lack. Will he be liable for interest u/s 234B and 234C?

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4 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160327 Points)
Replied 28 September 2021

No, Not interest u/s. 234B & 234C of the act, but for delay of payment of self assessment tax after 31st July next year.

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160327 Points)
Replied 28 September 2021

If self-assessment tax liability of a taxpayer exceeds Rs.1 lakh, he is liable to pay interest under Section 234A from the expiry of the original due date, that is 31 July 2021.

SARVESH PRABHU (Student CA IPC / IPCC) (23 Points)
Replied 28 September 2021

Thank you for the reply sir, But if the Assessee had filed the income tax return for AY 2021-22 by opting to new tax regime and also paid interest u/s 234A and after income tax dept issued demand for non payment of interest u/s 234B and 234C, In such case should the assessee agree to demand and pay or disagree with demand?