ZenIT || 234A- Interest for defaults in furnishing return of income
234A- Interest for defaults in furnishing return of income
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 not furnished, the assessee shall be liable to pay simple interest at the rate of one percent for every month or part thereof.
Example :-
The 234A Interest that is coming in the above illustration (computation), calculation is given below -
Total Tax:- 244548
Interest Calculation Detail 234A
254500 x 1(M) x 1% = 2545
Total Interest = 2545
Details:-
Return Filing Due Date: 31/07/2021Due Date Extended upto: 31/12/2021Interest Calculated Upto: 18/08/2021Date of E-Filing: 19/08/2021
Note : It is clarified that the extension of the dates as refer of Circular NO.9/2021 dated 20.05.2021 this Circular shall not apply to Explanation 1 to section 234A of the
Act, in cases where the amount of tax exceeds one lakh
rupees.
Hope this Helps
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