28 September 2013
Interest for the late payment of Income tax- Interest paid under section 220{2} for the late payment of income tax is not deductible as revenue expenditure.
28 September 2013
The charging of interest on delayed the filing of tax returns and short/delayed payment of taxes are mandatory and there are no provisions for reduction or waiver of interest by the tax department (except in a very limited circumstances, as empowered to the chief commissioner of income tax) even if the tax payer provides a reasonable cause for such defaults.
This issue has been a subject matter of debate before various courts, including the Supreme Court of India, and time and again courts have held the constitutional validity of the mandatory charging of interest under sections 234A, 234B and 234C of the Act.
At the time of filing the tax returns, the tax payer has to compute the interest on the basis of his/her total income as disclosed in the tax returns, which later can be substituted by the tax officer with assessed..
Querist :
Anonymous
Querist :
Anonymous
(Querist)
28 September 2013
again thanks,
but if we already count as disallowed and that interest amount include in taxable income and calculate on tax it.
so now where to show that amount which we count as disallowed or will be disallowed in future ?