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

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.

Mr.Balasubramanyan Sec 234 A charges interest for delay on filing return(filing return after due date). Sec 234 A(1) stipulates method of calculation of interest. Method is to calculate interest @ 1% on tax on total income reduced by advance tax and TDS or TCS. Tax on total income is gross liability. So whether there is a liability as on due date or not is not important. If full tax amount is covered by TDS or Advance tax or both or in the case of refund then interest under section 234A wont be applicable. But tax liability discharged by self assessment tax under sec 140 A then interest will be there for that self assessment tax amount. Please reply if i am wrong.

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......

I go with you...

I go with hitesh kumar. I gone through the case law. As far as Act is concern we need to pay interest u/s 234 A . But court decision is  against act.  So i accept that we don't need to pay interest u/s 234A.

 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