234A interest
mukesh (Student CA IPC / IPCC) (40 Points)
23 September 2019
Whether 234A interest needs to be calculated on tax payable including 234A also???
3 Replies
Kapadia Pravin
(17259 Points)
Replied 23 September 2019
The taxpayer is liable to pay simple interest at 1% per month or part of a month for delay in filing the return of income . Tax is calculated on tax payable.
Nimitha Kundanam
(Senior Executive Accountant)
(250 Points)
Replied 24 September 2019
It is not including 234A. only on tax liability amount.
Suresh Thiyagarajan
(Student)
(3986 Points)
Replied 24 September 2019
1. Interest u/s 234A @ 1% will need to be payable on the Net tax liability payable after deduction of TDS and advance tax.
2. If your IT comes to Rs. 50,000 and you have a credit of Rs. 30,000 in TDS and Rs. 15,000 in advance tax, interest u/s 234A will need to be paid on the balance Rs. 5,000 @ 1% p.m for every month or part of a month from the due date for filing the ROI until the return is filed.
Please correct me if the above solution has an alternative view.
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