Interest u/s 234abc

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Querist : Anonymous

Querist : Anonymous (Querist)

06 June 2013 How is interest u/s 234ABC arrived in a proceeding u/s 153A where assessee has not filed his returns ?

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CMA Gul S

CMA Gul S (Expert)
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06 June 2013 Section 234 A : Interest payable for default in furnishing the return of income
Where the return of income for any assessment year is furnished after the due date or is not furnished, the assessee shall be liable to pay simple interest at the rate of one per cent for every month or part of a month for the period commencing on the date immediately following the due date upto the date of furnishing the return (in cases where return is furnished after the due date) or upto the end of the Assessment Year (in cases where no return is furnished) on the amount of shortfall in total income tax payable by the assessee.

In simple words, interest @ 1% per month is payable on the amount of income tax paid after the due date for filing of the return.

Due Dates for Filing of Returns

For non corporate assessees whose accounts are required to be audited 30th September 2013
For salary earners and other non corporate assessees whose accounts are not required to be audited 31st July 2013

Section 234 B : Interest payable for default in payment of advance tax
An assessee who is liable to pay advance tax has failed to pay such tax or where the advance tax paid by such assessee is less than ninety per cent of the assessed tax, the assessee shall be liable to pay simple interest at the rate of one per cent for every month or part of a month for period from the date on which the payment of advance tax became due on the amount of shortfall in the amount of advance tax paid.

In simple words, interest @ 1% per month is payable on the amount of income tax paid after the end of the financial year.

Section 234 C : Interest payable for deferment of advance tax
Interest is payable @ 1% for 3 months on the amount of shortfall in payment of advance tax became due on 15th June (applicable only to Corporate assessees), 15th September (all assesses) and 15th December (all assessees) and interest @ 1% on the amount of shortfall in payment of advance tax became due on 15th March (all assessees).