Sec 234 a

This query is : Resolved

abhishek (Querist)
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18 February 2012 Mr a has filled his income tax return u/s 139(1) after due date disclosing tax refund.
Mr A has not paid any advance tax but tds has been made.

whether he will be liable for interest u/s 234A ?

CA Sumat Singhal

CA Sumat Singhal (Expert)
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18 February 2012 Under section 234A of the Act, where a return of income is not filed in time or not filed at all simple interest is payable at a particular rate for the period commencing on the date immediately following the due date for filing the return and ending on the date of furnishing of the return or the completion of an ex-parte assessment, as the case may be. The interest is payable on the amount of the tax on the total income as determined.
IN CIT V Dr prannoy Roly 2009 SC held that no interest when tax is paid before due date of filing return. SO by reading whole case it may be opinied that other course of action may be taken by AO but not interest u/s 234A.
opinions are invited

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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18 February 2012 Since there is 'no tax is payable' u/s 140A, question of levy under section 234A doesn't arise.
Here, Dr. Pranoy Roy's case is distinguishable since in his case there was tax due u/s 140A which was paid before the due date of filing the return and the return was filed after due date.

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