• Welcome to itatonline.org Forum.

Levy of interest U/s. 234C on Assessed Income U/s. 143(3)

Started by ROAR GANSHI, December 17, 2011, 03:54:37 PM

Previous topic - Next topic


Dear All,

I m new member of ur group. Please help me to find out judgments on levy of interest U/s. 234C on assessed income is right or wrong. As per my knowledge interest U/s. 234C can calculate at the time of filing the return of income. If one has paid the same. In assessment order the assessing officer can not charged interest U/s. 234C on assessed income.

Please help me on this topic. Give your precious view.


Roar Gandhi


No case laws required. Interest u/s 234C, as per the Act, is charged only on returned income and not on income assessed. When it is explicit in the Act why to take help from the case law.
Show the Act and argue. Take the help of any Singhania books.

bhaskar rao

Dear Sir,

What about 234B which will apply to difference on returned income and assessed income. I feel it has been held to be mandatory so if addition is made by learned A.O. then interest under section 234B is payable on difference between returned income and assessed income from 1st April to date of assessment.

Thanking you,

Yours faithfully,

Bhaskar Rao, ITP

B Natarajan

Interest u/s. 234B will be charged on the assessed tax as per order u/s. 143(3) less tax portion included in the self assessment tax as per section 140-A from 1st April of the Assessment Year to the date of completion of assessment.

Interest u/s. 234C is chargeable only on the returned income.

B Natarajan

sai prasad

sec.234C(1)(a)(i) and (b)(i) impose interest on the shortfall in payment of adv.tax instalment iwth reference to the tax due on the income returned. Explanation is also added to define what is tax due on the returned income and its calculation . Therefore,  tax on assessed income is not  covered in the said sec.