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Interest on late payment

Nitesh Jhawar (MUMBAI) (67 Points)

25 August 2014

an assessee has filed return before due date in assessment year 2013-14 and show tax liability of rs. 3000. he didn't paid tax till now and also didn't sent ITRV till now. he want to pay tax now. Is he liable to pay any interest, if yes under which section and what will be rate of interest and further consequences.please give your suggesssion as soon as possible.

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5 Replies

CA Saloni (Manager-Accounts & GST Consultant) (5124 Points)
Replied 25 August 2014

Dear nitesh,

An income tax return filed without paying self assessment tax is considered as defective return.

Make sure the assessee now pays the tax with interest and files a revise return.....

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CA SUKSHAM ARORA (CA) (569 Points)
Replied 25 August 2014

agreed with above

Nitesh Jhawar (MUMBAI) (67 Points)
Replied 28 August 2014

Under which section interest to be paid.

Nitesh Jhawar (MUMBAI) (67 Points)
Replied 28 August 2014

And does revised return compulsory to b filled.

CA Neelesh Sharma (2) (69 Points)
Replied 28 August 2014

Yes the return will be considered defective and a revise return U/s 139(5) or in a reply to notice U/s 139(9) is to be filed otherwise the same would be treated as no return filed and the assessee shall be liable to be an assessee in default.
Further as there is no need to pay advance tax therefore int is to be paid U/s 234 (a) and (b)