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Interest u/s 234a during assessment u/s147

vasdheer (working) (40 Points)

26 December 2012

a) there is delay in filing return

b) there is also delay in filing return in response to notice u/s 147

will the interest u/s 234A be levied in both the occasions and on what amounts

- please give clarifications

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4 Replies

Ashtavinayak Consultants (Others) (26 Points)
Replied 26 December 2012

Yes the interest will be payable u/s 234A in both cases

a) there is delay in filing return - i.e. original return within due date u/s 139

Interest would be charged on tax payable ( tax less taxes paid till date of filing return )

b) there is also delay in filing return in response to notice u/s 147

If original return was within time but return in response to notice u/s 147 was after time allowed in the notice then interest is payable.

Interest will be charged on similar basis as in a) above.

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CMA RAVI (ASSISTANT MANGER - FINANCE) (478 Points)
Replied 26 December 2012

Where the return of income for any assessment year under sub-section (1) or sub-section (4) of section 139, or in response to a notice under sub-section (1) of section 142, is furnished after the due date, or is not furnished, the assessee shall be liable to pay simple interest at the rate of [one] per cent for every month or part of a month comprised in the period commencing on the date immediately following the due date, and,(a) where the return is furnished after the due date, ending on the date of furnishing of the return; or (b) where no return has been furnished, ending on the date of completion of the assessment under section 144

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CA Mukesh Kedia (Chartered Accountants) (44 Points)
Replied 26 December 2012

Originally posted by : vasdheer
	a) there is delay in filing return b) there is also delay in filing return in response to notice u/s 147 will the interest u/s 234A be levied in both the occasions and on what amounts - please give clarifications

U/s 234A Intrest on delay filing of returns is penalised. In your case intrest shall calculated for period ater due date till the date of filing of return (first time, either voluntary or on receipt of notice from revenue) on the amount of tax due to department as on due date of filing of return. If no tax due as on due date then no intrest shall penalised u/s 234A.

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CA D.C. Bansal (Accounts Head) (283 Points)
Replied 27 December 2012

Interest U/s 234A will be charged only for delay in filling the return because the section deals with the "Interest for defaults in furnishing return of income". If you have already filled a return for the concerned assessment year, interest has to be paid from the expiry of the time allowed in notice u/s 148 and upto the date of filling the return. If you do not file the return under this notice then interest will be charged upto the date of completion of assessement. Please remember if you have never filed the return for the assessment year then interest will be charged from the due date of the filling of the return.

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