Section 234 A – Interest payable for default in furnishing the return of income

In simple words, interest @ 1% per month is payable under section 234 A of IT act on the amount of income tax paid after the due date for filing of the return.

Due Dates for Filing of Returns

For Corporate assessee who are required to furnish report u/s 92E of the IT Act 31st November 2013
For all other Corporate assessee. 30th September 2013
For non corporate assessee whose accounts are required to be audited 30th September 2013
For salary earners and other non corporate assessee whose accounts are not required to be audited 31st July 2013

Text of Section 234 A of IT Act, 1961

Section 234 A - Interest payable for default in furnishing the return of incomeWhere the return of income for any assessment year under sub-section (1) or sub-section (4) of section 139, or in response to a notice under sub-section (1) of section 142, is furnished after the due date, or is not furnished, the assessee shall be liable to pay simple interest at the rate of one per cent for every month or part of a month comprised in the period commencing on the date immediately following the due date, and,—

(a) Where the return is furnished after the due date, ending on the date of furnishing of the return; or

(b) Where no return has been furnished, ending on the date of completion of the assessment under section 144,

on the amount of the tax on the total income as determined under sub-section (1) of section 143, and where a regular assessment is made, on the amount of the tax on the total income determined under regular assessment, as reduced by the amount of,—

(i) advance tax, if any, paid;

(ii) any tax deducted or collected at source;

(iii) any relief of tax allowed under section 90 on account of tax paid in a country outside India;

(iv) any relief of tax allowed under section 90A on account of tax paid in a specified territory outside India referred to in that section;

(v) any deduction, from the Indian tax payable, allowed under section 91, on account of tax paid in a country outside India; and

(vi) any tax credit allowed to be set off in accordance with the provisions of section 115JAA.

Explanation 1.—In this section, “due date” means the date specified in subsection (1) of section 139 as applicable in the case of the assessee.

Explanation 2.—In this sub-section, “tax on the total income as determined under sub-section (1) of section 143” shall not include the additional tax, if any, payable under section 143.

Explanation 3.—Where, in relation to an assessment year, an assess-ment is made for the first time under section 147 or section 153A, the assessment so made shall be regarded as a regular assessment for the purposes of this section.”

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