Nitesh Gupta (Articled Assistant) (145 Points)
12 January 2012A person has filed his Income Tax Return for A.Y. 2011-12 on 31st December, 2011. Due date u/s 139(1) for him was 31st July, 2011. His tax liability was Rs. 500 which he deposited on 31st July, 2011.
Now please tell me that whether he is liable to pay Interest u/s 234A or not?
Keval Ponkiya
(CA CS MBA(Fin.) M.Com. L.L.B.)
(223 Points)
Replied 12 January 2012
Amit Agarwal
(Articled)
(37 Points)
Replied 12 January 2012
I too agreed with keval ji, as there is no question fo delay in payment of Tax the assessee is not liable to pay interest u/s 234A.
sameera
(student)
(50 Points)
Replied 12 January 2012
Hi,The corollary is that even though a person may have paid the full tax before the due date for filing the return, merely because he delays the filing of the return, he would be visited with interest even on the amount which has already been paid.And also SEC234A is interest for defaults in furnishing return of income but not for late deposit of tax with the It dept.
Ramanuj
(Accountant.)
(834 Points)
Replied 13 January 2012
Mr. Nitesh Gupta person have already tax deposit on 31.07.2011, i think tax laibiltiy is over so no impose u/s 234A.
Thanks
With regards
Ramanuj
CA Neil Ganatra
(Partner - Gautam Joshi & Co.)
(871 Points)
Replied 13 January 2012
If the assessee has paid self assessment tax before due date of filing return of income then even if return is filed after due date, interest u/s 234A will not be chargable.
This view is supported by following judgements:
CIT v. Pranoy Roy [2009] 179 Taxman 53 (SC) & Milan Enterprise v. CIT (2005) 95 ITD 18 (ITAT Mumbai Bench)
srinivass
(CA Final)
(2466 Points)
Replied 13 January 2012
| Originally posted by : CA Neil Ganatra | ||
 |
If the assessee has paid self assessment tax before due date of filing return of income then even if return is filed after due date, interest u/s 234A will not be chargable. This view is supported by following judgements: CIT v. Pranoy Roy [2009] 179 Taxman 53 (SC) & Milan Enterprise v. CIT (2005) 95 ITD 18 (ITAT Mumbai Bench) |
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CA Mudit Agarwal PGDFM,MCP,IFR
(Dy. Manager (Taxation))
(289 Points)
Replied 14 January 2012
Dear Nitish,
Section 234A is applicable due to late filing of return. There is no connection with payment of tax.
Hence interest will be charged u/s 234A even the tax has been deposited in time........
CS Rajveer Rai, Gurgaon
(CS)
(646 Points)
Replied 14 January 2012
Interest under section 234a is payable if there is any statutory due and not for late filing of return. Interest and penalty for late filing of return are two separate things. a case law has also been judged on this same ground by supreme court.
TARUN ARORA
(Fresher CA)
(132 Points)
Replied 14 January 2012
INTEREST U/S 234A WILL NOT BE APPLICABLE HERE....
AS TAX PAYABLE IS DOPOSITED BY ASSESSEE ON TYM......
CA SUMIT LAL
(PROPRIETOR)
(83 Points)
Replied 14 January 2012
As the tax liability is considered from the point of view of 31st March, and since taxes are paid on 31st July only, there is a certain amount of interest payable for default in furnishing return of income.
CA shilpa shinagare
(practicing chartered accountant)
(233 Points)
Replied 16 January 2012
Interest u/s 234A would not be payable when the SA tas is paid on or before the due date of filing the return evenif return is filed after the due date. sine u need to calculate interest on tax payable and since there was no tax payable as on the date of filing the return, the interest in this case will nt b applicable.
CAclubindia
