Interest under section 234a query

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

14 October 2013 Tax-5259
Education cess-105
Secondary and higher education cess-53
total-5417
Due date of return filing-31.07.13
Now return is to be filed. Please calculate interest under section 234A?????????

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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14 October 2013 When the tax liability is discharged. before the due date or after the due date?

Incase all the tax paid before the due date, sec.234A will not apply, else need to 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

Querist : Anonymous

Querist : Anonymous (Querist)

14 October 2013 Mr.Ramesh me too know the provision please help me figure out actual tax liability tax is to be paid now in the month of october 2013.

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CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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14 October 2013 Since 3 months delay of return. so 3% on the total tax liability on Rs.5417 will apply

amount =5417x3% = Rs.163 only u/s.234A

Querist : Anonymous

Querist : Anonymous (Querist)

14 October 2013 1 more thing Mr.Ramesh the person i am talking about is female senior citizen her tax liability is of the interest amount from various FDs...but the amount which is invested in FD belongs to her son and daughter so any tax implication of that amount.

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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14 October 2013 Interest income & tax on the fixed deposit holder, this query as you told that tax on female senior citizen. the clubbing provision will not apply this case

Querist : Anonymous

Querist : Anonymous (Querist)

14 October 2013 Mr.Ramesh you didnt understand my query is the FD amount which is invested whether department will ask source of income of that amount from that lady???????as the amount invested is nothing but the earnings of son and daughter who are earning abroad...

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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14 October 2013 It can be consider as gift from son/daughter, it is allowable under Income tax. so it will not have any impact on source of income for her.

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Querist : Anonymous

Querist : Anonymous (Querist)

14 October 2013 ya but this amount which is exempted as gift is required to be shown in ITR under exempt income section.?????///

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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14 October 2013 No need to show in ITR, just you can show the interest income. incase assessment or scrutiny notice issued, that time it will be explained.