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Sec 234(a)

ITR 504 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

 


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