06 May 2009
Interest rate mentioned u\s 234C(a)(ii) & 234C(b)(ii) is only one percent i.e. it is not mentioned whether 1% per month or anum unlike in 234(a)(i), where it specifically given that 1% per month. In this case how we can interpret? Is there any other circular\notifications etc confirming the above?
234A. (1) Where the return of income for any assessment year under sub-section (1) or sub-section (4) of section 139, or in response to a notice under sub-section (1) of section 142, is furnished after the due date, or is not furnished, the assessee shall90 be liable to pay simple interest at the rate of 91[one] per cent for every month or part of a month comprised in the period commencing on the date immediately following the due date.
Check this out. You can get this from http://law.incometaxindia.gov.in/TaxmannDit/DisplayPage/dpage1.aspx?md=2&typ=se&yr=&ch=
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