18 October 2012
sir, i have filed my clients return which is a private ltd. company and in that i have paid tax on 30th september 2012 sunday and the challan of the same was generated on 1st of october by bank due to closing so i want to know wheather interest will be chargable on the same or not????
According to Income Tax Act:- When tax deposit last day will occured on holiday or Gazzetted holiday then next working day will be treated last day for payment of taxes.
In your case challan was generated on 1st October so Interest will not be charged.
19 October 2012
Circular 676 dated 14-01-1994 (205 ITR St 330) regarding non levy of interest u/s 234B / C for belated remittance ,due to the closure of the bank on the cut off date, can be squarely applied to section 234A meaning thereby, in your case, interest can't be levied.
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