Interest and Fee Payable

Applicability: Section 234A(1) of the Income Tax Act, 1961, levies interest if an assessee fails to file their income tax return: Under Section 139(1)(Original due date), Under Section 139(4)(Belated return), or In response to a notice under Section 142(1)(Special notice for filing return). When is Interest Charged? Interest is charged if: The assessee has unpaid tax liability(after deducting TDS/TCS/Advance Tax). The return is not […]

Section 234A(3) of the Income Tax Act, 1961, deals with interest payable when an assessee fails to file a return of income in response to a notice issued under Section 148 (reassessment) or Section 153A (search cases). This provision ensures compliance with tax filing obligations even in cases where the Income Tax Department reopens assessments or conducts searches. Key

Section 234A(4) of the Income Tax Act, 1961, deals with the adjustment of interest when there is a subsequent revision, appeal, or rectification that changes the tax liability after interest under Section 234A has already been charged. 1. When Does It Apply? Interest under Section 234A(1) or (3) may be recalculated if: The tax liability is modifieddue to: An appeal(e.g., CIT(A), ITAT, High Court, Supreme

Section 234B(1) of the Income Tax Act, 1961, imposes interest if an assessee either: Fails to pay advance tax(even if liable), or Pays less than 90% of the total tax due(or 100% for non-tax audit cases). (A) Key Provisions of Section 234B(1) When is Interest Charged? Interest applies if: Advance tax paid is less than 90%of the actual tax liability (or 100% for non-tax

Section 234B(3) deals with the recalculation of interest under Section 234B when the assessed tax is modified due to: Appeal orders(CIT(A), ITAT, High Court, Supreme Court) Revision orders(Section 263/264 by Principal CIT/CIT) Rectification orders(Section 154) Reassessment orders(Section 147/153A) 1. When Does It Apply? If the final tax liability changes after: An appeal/revision/rectificationreduces or increases the tax demand. The assessing officer modifiesthe tax payable. 2. Effect

Section 234B(4) of the Income Tax Act, 1961 provides for the adjustment of interest when there is a subsequent modification of the tax liability due to: 1. Applicable Orders Interest under Section 234B may be recalculated when tax liability changes due to: Appellate orders(CIT(A), ITAT, High Court, Supreme Court) Revision orders(under Section 263/264 by PCIT/CIT) Rectification orders(Section 154) Reassessment

Section 234C of the Income Tax Act, 1961 imposes interest for deferring advance tax payments beyond the prescribed due dates, even if 90% of the total tax liability is ultimately paid. 1. Key Provisions of Section 234C When Does Interest Apply? Interest is charged when: Advance tax installments are paid lateor paid less than required amounts Applies even if total advance

Section 234D of the Income Tax Act, 1961, mandates that taxpayers repay excess refunds received during summary assessment (under Section 143(1)) if the refund is later reduced or negated during regular assessment (scrutiny under Section 143(3), reassessment under Section 147/153A, etc.). The taxpayer must also pay interest @ 0.5% per month on the excess amount from the refund date until the regular assessment

Section 234E of the Income Tax Act, 1961, imposes a late filing fee for delays in submitting TDS (Tax Deducted at Source) or TCS (Tax Collected at Source) statements. This provision ensures timely compliance and accurate reporting of tax deductions/collections. Key Provisions of Section 234E Applicability Applies to deductors (TDS)and collectors (TCS) who fail to file quarterly statements (Forms 24Q, 26Q, 27Q, etc.) by the due

Section 234F of the Income Tax Act, 1961 imposes a late filing fee if an assessee fails to file their Income Tax Return (ITR) by the due date. This provision applies to all taxpayers (individuals, companies, firms, etc.) and is in addition to any interest or penalties under other sections. 1. Key Provisions of Section 234F Late Filing Fee Structure CATEGORY