Sec 234(a)

ITR Filing 520 views 1 replies

Hello friends ! How to intrest under sec 234(a) is calculated? Any one can explain me.

Replies (1)

As per Sec. 234 if u failed to file return before the due date then u have to pay interest on tax @ 1 % per month or part thereof

For example an individual return is filed on 10 th Sept. and tax payable is Rs.5270, 234 A interest is calculated as follows,

Due date of individual return is 31st July and return is filed on 10th Sept. hence the delay is around 1.5 months means take 2 months for calculation because as per act 1% interest for part of the month also.

so interest rate is 2%

The rate to be applied on the tax payable reduced to lower nearest value divisible by 100

i.e. in this case the rate to be applied on Rs. 5200 because it is lower than 5270 and nearest value divisible by 100 ok

5200*2%=104 is the interest payable u/s 234A

This is the the procedure

If anyone finds any correction in this please reply me

 


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
29 May 2026
Finance Head

Bhawar Sales Corporation

Chennai

Graduate (Any)

View Details
Company
ARTICLESHIP 31 May 2026
Article Assistant

KPRS And Associates

New Delhi

CA Inter

View Details
Company
26 May 2026
Senior Accountant cum purchase Manager

Vardhaman Group of India

Pimpri Chinchwad

CA Inter

View Details
Company
ARTICLESHIP 09 June 2026
Article Trainee

Numbertree LLP

Mumbai

CA Inter

View Details
Company
ARTICLESHIP 28 May 2026
Accounts, Audit & Compliance Executive

Shyam Joshi & Associates

Pune

B.Com

View Details
Company
23 May 2026
Article Assistant

Geeta Manchanda & CO.

New Delhi

CA Inter

View Details
Company
Featured 28 May 2026
SEMI QUALIFIED/ CA DROPOUTS/ ARTICLES

T R SOOD & CO

New Delhi

CA Inter

View Details
Company
ARTICLESHIP 23 May 2026
Article Assistants

Acupro Consulting

Gurgaon

CA Inter

View Details