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Query asked by SUNIL ARORA on December 11, 2020

Re: 234D

Refund issued under section 143(1). While making 143(3) interest allowed under section 244A was withdrawn and 234D was charged on refund enjoyed by assessee. Whether interest u/s 244A and 234D will be charged by Assessing Officer while giving effect of Form 5 or these interests shall be waived.
Tax u/s 143(1) 100000
tds 120000
REFUND 20000
INTEREST 244A 2000

TAX U/S 143(3) 140000
234ABC 5000
244A(3) 2000
234D 500

Amount payable under VSV will be 40000 (140000 – 100000) or it would be 42500 (40000+2000+500)

We presume the valid appeal is pending before Competent authority as on 31 -1 -2020 .  Amount payable will be on the amount on amount of tax disputed in appeal .  Once the amount is settled the interest will be waived and other consequences will follow as per the law . Please read Section 7 of the Direct Tax Vivad Se Vishwas Act , 2020 Explanation , excess amount  shall not be entitle to interest on such excess amount under section 244A of the  Act .

 


 

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