234A- Interest for defaults in furnishing return of income

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 is not furnished, the assessee shall be liable to pay simple interest at the rate of one per cent for every month.

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

2545

 

 

 

Total Interest

 

2545

 

 

 


Return Filing Due Date :

31/07/2021

Due Date Extended upto :

31/12/2021

Interest Calculated Upto :

18/08/2021

Date 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 

    • Related Articles

    • Interest payable by the Assessee for Defaults in Furnishing the Return of Income required by a Notice under Section 148 [Section 234A(3)]

      Interest payable by the Assessee for Defaults in Furnishing the Return of Income required by a Notice under Section 148 [Section 234A(3)] The interest will be payable for the period commencing on the date immediately following the expiry of time ...
    • Tax Audit Report Date issue

      This issue primarily occurs when there are incorrect regional settings and date formats configured on the system. To resolve this issue, please update the regional settings and adjust the date format on your system accordingly. To check and set the ...
    • Pre construction Interest

      Deduction for Pre-Construction Interest What is pre construction Interest? It is basically the interest paid on home loan while the residential house was “under construction”. Deduction as per section 24, Income tax Act says that the Interest paid ...
    • ZenIT || Clarification on Interest under Section 234F

      As per Section 234F of the Income Tax Act, taxpayers must pay interest for delay in filing ITR. In simple words, if the user fails to file his tax returns within the standard deadline, the user might end up paying up to INR 10,000 as interest. (1) ...
    • Income Tax || Auditor Information

      Navigate to "Transactions" → "Auditor Information". Enter Tax Audit Information: Financial Statement and Audit Report: Choose the format for Balance Sheet and Profit & Loss account (Vertical or Horizontal). Specify whether Tax Audit under section ...