234b interest

This query is : Resolved

Karishma (Querist)
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04 March 2016 If I have to file return under section 142(1) for A.Y 2011-12 what is the time period of delay to be considered for interest u/s 234B. The interest as per income tax return is being calculated for 2 years . And according to me it should be from 31.07.2011 to 05.03.16 ie 56 months. Which one of these is correct. Kindly advise

Suresh Ramaswamy

Suresh Ramaswamy (Expert)
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04 March 2016 Interest under section 234 B is applicable, if the total TDS and advance tax paid is less than 90% of the tax payable. It is charged from the 1st of April of the assessment year till the date of payment of self assessment tax. It is also applicable if at the time of final assessment due to disallowances / additions the total income is enhanced and tax is payable due to the enhancement. In such a case the demand notice issued computing interest u/s 234 B on the excess above amounts paid.

From your query you say the ITR has to be filed for A.Y.2011 - 12. The time limit for filing of ITR is two years from the beginning of the assessment year - i.e the return can be filed only upto 3st March 2013. The e-filing system does not permit on line filing thereafter and hence calculates the interest under 234 B for only 24 months.

I also fail to understand how a notice u/s 142(1) can be issued after a period of more than 4 years.