07 January 2014
according to section 234A interest on late return filing is 1% p.m. on tax but according to sec 139(8) it is 15% p.a .. i m very confused ..regarding interest on late return filing and also in time limit for the same... please help
09 January 2014
sir, but I read at income tax site that as per sec 139(8) the assessee shall be liable to pay simple interest at [fifteen] per cent per annum, reckoned from the day immediately following the specified date to the date of the furnishing of the return or, where no return has been furnished, the date of completion of the assessment under section 144, on the amount of the tax payable on the total income as determined on regular assessment, as reduced by the advance tax, if any, paid, and any tax deducted at source : Provided that the [Assessing] Officer may, in such cases and under such circumstances as may be prescribed, reduce or waive the interest payable by any assessee under this sub-section.
09 January 2014
Initially sec.234A only will apply by the assessee. sec.139(8) will be initiated by the assessing officer if he may feel to levy and that time this interest can be set off with 15% per annum
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