A.Y.2008-09, Individual male assessee Return filed on 08/02/2010

Net Taxable Income              2,50,180

Tax Including cess                    24,776

Adv Tax paid (06/05/2008)       25,000

In the Above problem is interest u/s 234 A,B &C is applicable or not...

Originally posted by : Hitesh Agarwal
	Interest u/s 234A is in the nature of compensation and not in the nature of penalty. Hence where the tax as per the returned income is paid before the due date of filing of return on income, no interest u/s 234A leviable, even if return not filed before due date. (CIT Vs Pranoy Roy, 254 ITR 755(Del,), CIT Vs India Meters LTD(2009) 309 ITR 231 (SC). So no interest will be leviable u/s 234A

Keeping the above case law in view and the above query, the advance tax paid as given may be treated as self assessment tax.. Coz very nature of advance tax is to estimate tax in advance and pay within the Previous Year.. Hence payment on may 2008 has to be self assessment tax.. Hitesh is right in hinting the case law. Hence 234A is not applcbl.. 234B and C shall continue to be applicable since no Advance Tax is paid... 

As per my knowledge this is appropriate answer....

i think interest u/s 234 A should not be paid because assessee has liability of Rs 24776 and such assessee paid advance tax of Rs 25000, 234 A interest is paid only if there is liability of tax but in this situation though assesse has filed late return, he is not liable for such interest because he is claiming refund of Rs 224....

Please clarify....

Siddharth you are right. But you cannot say it is advance tax. Rather it is self-assessment tax. Advance tax means tax paid within the financial year itself and any tax paid after that will be considered as self-assessment tax. secondly if the self-assessment tax is paid before the due date of filing of return of income by applying the case law there is no liability to pay tax. But the good practice is that one should file return in time and should not resort to always applying the case law. So to avoid any litigation one should file return in time and if he has filed return in time than he will be not incurring any liability towards sec234A

All the discussions stated above finally reached on the same conclusuion that I have stated earlier.

Intt u/s 234A is not applicable.

Intt u/s 234B & 234C is applicable. And there are no ifs and buts on it.

Nitu you may be correct but the base you have arrived was not correct view. Even though your answer was correct the base was not correct.

Dear Hitesh,

Whatever I reply is never baseless. If you will read my reply carefully.. you can see that I have mentioned that intt u/s 234A is applicable for late filing of ROI. But the amount on which such intt is calculated comes to nil thats why Intt will be nil. Again I've stated Taxes paid which are admissable to be deducted from Taxes Due. SAT paid b'fore due date is deductible as per Dr. Prannoy Roy case as stated by you. I don't change my answers on the basis of change of opinions. B'fore pointing fingers on other people, one should carefully go through what other person is saying.