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234A/B/C on Defective Return

04 March 2021

I earned salary from Mar2019 till Aug2019 on company payroll. Further I was extended on contract from Sept2019 till Mar2020. I filed the ITR on 12 Dec 2020, before due date for AY20-21. I got notice of defective return on 18Feb2021 and I filed revised ITR on 3Mar2021 and paid additional tax on contractual income under 44ADA-presumptive. However, the interest are shown now under 234A, 234B and 234C.

If I filed before due date why 234A?

How/fromwhen 234B and C comes into picture?

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2 Replies

Manoj BG (Tax Professional and in Service) (1795 Points)
Replied 05 March 2021

Hello Ankush,

Pursuant to CBDT notification 35/ 2020 dated 24 June 2020, interest under Section 234A of the Income Tax Act is applicable in cases where self-assessment tax payable is more than Rs.100,000. If you have paid SA tax in excess of Rs. 1 lakh, interest u/s 234B would be applicable from 1 December 2020 till the date of filing of return at 1% per month or part of the month.

Regards,

Manoj

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Ankush Dabas (8 Points)
Replied 05 March 2021

Originally posted by : Manoj B. Gavali
	Hello Ankush, Pursuant to CBDT notification 35/ 2020 dated 24 June 2020, interest under Section 234A of the Income Tax Act is applicable in cases where self-assessment tax payable is more than Rs.100,000. If you have paid SA tax in excess of Rs. 1 lakh, interest u/s 234B would be applicable from 1 December 2020 till the date of filing of return at 1% per month or part of the month. Regards, Manoj

Thanks for the response Manoj.

I believe there was further extension till 32st Dec2022 for ITR filing, CBDT notification: Notification No. 88/ 2020/ dated 29th October, 2020.

So, will that not mean ITR can be filed by 31st Dec without having implications of 234A irrespective of SA less/more than 1L?

During my correction of defective return I had to pay more than 1 L tax. But what should be the start start date for 234B, 1 April 2020 or Dec2020/Jan2020?

Same case for 234C?