Tax Ready Reckoner

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

Section 234G of the Income Tax Act, 1961, imposes a late fee on institutions, trusts, or funds that fail to: File the donation statement (Form 10BD)by the due date, or Issue donation certificates (Form 10BE)to donors on time. This provision ensures compliance for entities approved under Section 80G(5) (charitable donations) or Section 35(1A) (scientific research donations). 🔹 Key Provisions of Section 234G Applicability Applies

Section 234H of the Income Tax Act, 1961 imposes a fee for failure to intimate/link one’s Aadhaar number with PAN as required under Section 139AA. Here are the key provisions: When Does the Fee Apply? If taxpayer fails to intimate/link Aadhaar with PAN by the due date Applies when Aadhaar is mandatory for filing ITR

Section 220(2) of the Income Tax Act, 1961, imposes interest @ 1% per month on unpaid tax demands if the assessee fails to pay within 30 days of receiving the notice. 1. Key Provisions of Section 220(2) When Does Interest Apply? Tax demand raised(regular assessment, reassessment, penalty, etc.). Assessee fails to paywithin 30 days of the demand notice. Interest Rate & Calculation 1%

Section 201(1A) of the Income Tax Act, 1961, imposes interest on a deductor (employer, company, etc.) who either: Fails to deduct TDS(Tax Deducted at Source), or Deducts TDS but fails to deposit itwith the government on time. 🔹 Key Provisions of Section 201(1A) When Does Interest Apply? DEFAULT INTEREST RATE PERIOD OF CALCULATION Failure to deduct TDS 1% per month From the

Section 244A of the Income Tax Act, 1961, governs the interest paid by the Income Tax Department to taxpayers when refunds are delayed. This ensures taxpayers are compensated for the government’s use of their money. 🔹 Key Provisions of Section 244A When is Interest Payable? Interest is paid if: ✅ Refund arises due to excess tax paid (TDS, advance tax, self-assessment