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Interest u/s 234B on updated return u/s 139(8A)

Tax queries 280 views 1 replies

Vipul Gupta

5 Points Joined August 2025

A return for AY 22-23 was updated u/s 139(8A) on 31st March 2025. Additional tax and applicable interest for period 1.4.23 to 31.3.25 was calculated and paid before filing it. During fy 25-26, ITR was reprocessed and as per intimation u/s 143(1) additional interest u/s 234B for the period 1.4.25 to date of processing had been demanded.

Is it correct?

If, which option under rectification request u/s 154 could be used?

Is there any other remedy?

Replies (1)

Aashok Kumar Sharma

Manager - Finance and Accounts

59298 Points Joined June 2010

Interest u/s 234B on an Updated Return filed u/s 139(8A) is chargeable only up to the date of filing of the updated return. CPC has incorrectly levied further interest till the date of processing, which is not supported by law. The correct remedy is to file a rectification request u/s 154 citing Section 139(8A), Rule 12AC, and CBDT Circular No. 1/2022. Such rectifications are routinely allowed.