DEAR MR. BALASUBRAMANYA,
U/S 234A INTEREST IS LEVIED ON ACTUAL TAX LIABILITY LESS ANY ADVANCE TAX AND TDS/TCS ONLY NOT AFTER DEDUCTING SELF ASSESSMENT TAX.
THUS INTEREST LIABILITY IS THERE.
REGARDS,
RITESH KOTHARI
Menu
Tax Paid in July 09, ITR not filled till now- arising Tax li
DEAR MR. BALASUBRAMANYA,
U/S 234A INTEREST IS LEVIED ON ACTUAL TAX LIABILITY LESS ANY ADVANCE TAX AND TDS/TCS ONLY NOT AFTER DEDUCTING SELF ASSESSMENT TAX.
THUS INTEREST LIABILITY IS THERE.
REGARDS,
RITESH KOTHARI
see this link you wil understand..
/experts/experts_message_display.asp?group_id=230080
Dear Ritesh, What u are saying is absolutely correct but that is an interpretation which is very clear from the reading of section 234A. This interpretation was also enunciated by the deptt. in an appeal to the Supereme Court in a case law But SC held in favour of the Assessee the case laws are as follows.
Delhi HC view
Prannoy Roy paid all the taxes due before the due date for filing the return. The return of income however was filed after a delay of 11 months. The department charged interest under Section 234A and declined to reduce the taxes paid a year ahead for calculation of interest on tax due as per assessment.
The Delhi High Court expressed the opinion that interest would be payable where tax has not been deposited prior to the due date of filing of the income-tax return. It took recourse to the doctrine of purposive construction and pointed out that by the delayed filing of the return, the Revenue has not suffered any monetary loss.
The court cannot read a penal provision in Section 234A. This was not and could not have been the object of the law. It cancelled the charging of the interest.
Apex court decides in CIT VS. PRANNOY RAO
The Revenue took up the matter in appeal. The Supreme Court dismissed the appeal. It pointed out that interest under Section 234A is not penalty. It is levied to compensate the Revenue from being deprived of payment of tax on the due date. Interest would be payable where tax has not been deposited prior to the due date of filing the return. Where the tax already paid by the assessee was not less than the tax payable on the returned income, which was accepted, the question of levy of interest under Section 234A did not arise (309 ITR 231 SC September 17, 2008).
Thus There wont be any interest being payable if u file the return before 31st march 2010. I said 31st march 2010 because even if u can file belated return upto 31st March 2011 but in that case u might have to pay Penalty of Rs.5000 under section 271F. So file the return whenever U have time before 31st March 2010 and Just relax.
Thanks Alot
Sathya Why don't u just give a look at the aforementioned Judgement. I know that section 234A is saying exactly what u think but please read the judgement first and do reply if u understand that.
To sathya
what you said is correct we have to pay 234A if w file the return after the duedate but when you have tax liability not when its zero, but when tax already paid within july then where is the tax liability, the interest will calculate on tax liability amount not on tax paid amount..First understand the concept.So no need to pay interest, he can file the returns upto march 31st without any interest......
Please Refer case CIT Vs Dr. Prannoy Roy (2009). Interest u/s 234A will not arise if the amount has been paid before due date
No need to pay interest under section 234A when he dont have tax liability, only you will get interest when you have tax liability after july, In which he already paid all the tax amount..
but friends he has paid self assessment tax , so there will be liability
if all the tax have been paid by Due Date i.e. Jule 31, then no need to pay any interesr U/s 234A, and question of interest u/s 234B & C does not arise as u were not liable to pay advance tax. further u can file ur return by 31st march next year. if u have loss under house property u will be allowed to carry it forward and have loss under any other head u wont be allowed to carry it forward.
Mr Ritesh Kotari is wrong, when self asst tax is paid [discharged] no tax on int is payable As no liability as of 31/07 in your case you NEED NOT PAY FURTHER MORE and can file the ITR upto 31/03/2010 with losing of c/fd benefits..
BSN GANESHAN ITP
good morning every bodY
N GANESHAN Is right , we can submited returned before 31march 2010 (is case tax returned with out tax panality) if we can not filled retuned before 31 march 2010 WE shall lavible panality of rs 5000 under act 271F
2 we can submited returned before 31march 2011 (is case nil tax returned )
but in case of audit and losses returned should filled it on time
i hope you will setisfied may views
Recent Threads
- Form 16 format
- 17(5) Blocked ITC
- Transfer of equity shares to original owner
- Login credentials and payment acknowledgement not
- Export sales not realised payment not received fro
- Capital gain account amount utilisation
- Form 26QB – Section 194-IA: TDS on Full Cons
- Indexation Benefit available or not on Calculation
- Documents for return exhibition material
- Can I set off equity losses(both short term loss a
Related Threads
CAclubindia
