Chargeability of Section 234A:
Interest is payable if
- ROI is filed after the due date specified u/s 139(1)
- ROI is not filed
|Interest u/s 234A: Default in Furnishing of Return|
Computation of Interest u/s 234A:
- Rate: 1% per month simple interest
- Period: Commences from the date next following the due date specified u/s 139(1) and ends on:
a) in case where ROI is file, the date of filing of ROI,
b) in case where ROI is not filed, the date of completion of assessment u/s 144/147/153A
Amount on which Interest u/s 234A shall be calculated:
Tax Determined u/s 143(1) or on assessment u/s 143(3)/144/147/153A
Less) Relief of Tax u/s 189 & 90
Less) Relief of Tax u/s 90A
Less) Relief of Tax u/s 91
Less) MAT Credit u/s 115JAA
Less) Advance Tax
Less) Self Assessment Tax paid on or before the due date
Amount on which interest u/s 243A shall be calculated:
- For computing interest u/s 234A “Tax” means “Income Tax including Surcharge and Education Cess”.
- Whereas result of an order made u/s 154/250/254/260A/262/263/264 or order of settlement commission u/s 245D, the amount of income tax on which interest was payable under this section is reduced or increase, then the interest payable under this section shall also be reduced or increased correspondingly.
- For Computing interest u/s 234A/B/C or any other interest, Income Tax shall be rounded off to the nearest hundred and any fraction of a hundred shall be ignored.