Interest u/s 201(1A) shall continue till the date of tax payment by the payees, says ITAT

Last updated: 10 August 2021

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The Income Tax Appellate Tribunal (ITAT) has ruled that interest under Section 201(1A) of the Income Tax Act continues to accrue until the date the payees actually pay their tax. This means interest liability doesn't cease simply because the payee has filed their income tax return. The tribunal clarified that while a payee can avoid the deductor being treated as an assessee-in-default if they declare the payment and pay tax due, the interest on delayed TDS payment is mandatory.

Court :
ITAT Mumbai

Brief :
Aforesaid appeal by assessee for Assessment Year (AY) 2008-09 arises out of the order of learned Commissioner of Income-Tax (Appeals)-59, Mumbai [CIT(A)], Appeal No. CIT(A)59/IT-133/ITO(TDS)-1(3)(4)/2015-16 dated 30/06/2017.

Citation :
I.T.A. No.5895/Mum/2017

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Poojitha Raam Vinay

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I simplify complex income tax, TDS, banking, and investment updates into practical insights for taxpayers, salaried professionals, pensioners, and senior citizens. I regularly write on ITR filing, tax compliance, savings schemes, and the latest financial rule changes in India.

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