| Question And Answer | |
|---|---|
| Subject: | Interest u/s 234A |
| Category: | Income-Tax |
| Querist: | Jigesh |
| Answered by: | Advocate Shashi Ashok Bekal |
| Tags: | advance tax, Interest, interest delay in filing return |
| Date: | August 4, 2021 |
Whether Interest u/s 234A will be liable where entire tax has been paid before due date but 234E had to be paid when filing the return after due date and hence there was a shortfall to the extent of 234E. Also kindly enlighten whether 234A will be applicable on the shortfall only.
Section 234A of the Income-tax Act, 1961 pertains to interest on account of delay in filing the return of income.
Interest under section 234A of the Act is levied for delay in filing the return of income. In other words, if the taxpayer files the return of income after the due date specified in this regard, interest under section 234A of the Act will be levied.
Interest under section 234A of the Act is levied from the period commencing on the date immediately following the due date of filing the return of income and ending on the date of furnishing the return of income, or in case where no return has been furnished, on the date of completion of the assessment under section 144 of the Act.
On the other hands, section 234E of the Act, where a person fails to file the TDS/TCS return on or before the due date prescribed in this regard, then he shall be liable to pay, by way of fee, a sum of Rs. 200 for every day during which the failure continues. However, the amount of late fees shall not exceed the amount of TDS.