When 234A interest is applicable?
Further, even the taxpayers who are not required to pay advance tax but have a self-assessment tax liability exceeding Rs 1,00,000 will also be required to pay interest at the rate of 1 per cent from the original due date i.e. July 31 or October 31, as the case may be, under section 234A of the Act.
What is 234A 234B 234C?
234A. Delayed Payment of Advanced Tax. 234B. Delayed Payment of Advanced Tax Instalment. 234C.
How is interest 234A calculated?
Interest = 100,000 x 1% x 7 = Rs. 7,000 This Rs. 7,000 is over and above the tax amount that you will be paying in any case. If you do not file your return at all, you will have to pay 1% interest till the end of the assessment year i.e. 31st March.
Is 234A applicable for senior citizens?
Is 234A applicable to senior citizens? Section 234A does not grant any income tax exemptions. However, the government may occasionally introduce relaxations for senior citizen taxpayers. So, it is important to keep an eye on such reliefs.
What is Section 234A?
Interest under section 234A is levied for delay in filing the return of income. Interest is levied at 1% per month or part of a month. The nature of interest is simple interest. In other words, the taxpayer is liable to pay simple interest at 1% per month or part of a month for delay in filing the return of income.
Is interest u/s 234A applicable for AY 2021 22?
Any taxpayer who had furnished the taxes and has not to furnish his or her ITR till the mentioned date specified u/s 139(1) is liable to pay interest u/s 234A.
How is income tax interest 234A 234B 234C calculated?
INTEREST UNDER SECTION 234A FOR LATE OR NON-FURNISHING OF INCOME TAX RETURN. Simple interest @ 1% for every month or Part thereof from the due date of filing of the Return to the date of furnishing of the return & in case return is not filed, it is upto the date of completion of assessment u/s 144.
Is 234A applicable for extended due date?
As per the Clarification 1 appended to the Circular, it has been clarified that the extension of the due date shall not be applicable in respect of provision of section 234A.
What is 234A in income tax?
Is 234A applicable if due date is extended?
How do you calculate interest 234A 234B & 234C with example?
IS 234C applicable for salaried employees?
Recently, the Supreme Court of India (the Supreme Court) in the case of Ian Peters Morris1 (the taxpayer) held that the employee would not be liable to pay interest under Sections 234B and 234C of the Income-tax Act, 1961 (the Act), in relation to any income chargeable to tax as salary, since tax on such income would …
What is section 234A of the Income Tax Act?
Under the Income Tax Act 1961, section 234A has provisions for interest in the event of a failure to file tax returns. Individual taxpayers must generally file their tax returns by July 31 of each assessment year. If you fail to file your return on time, interest will be charged under section 234A of the Income Tax Act.
What is Section 232 of the Income Tax Act 1961?
Chapter XVII (Sections 190 to 234G) of the Income Tax Act 1961 deals with the provisions related to collection and recovery of tax. Section 234A of IT Act 1961 provides for Interest for defaults in furnishing return of income. Recently, we have discussed in detail section 232 (Recovery by suit or under other law not affected) of IT Act 1961.
How many types of interests are there in section 234A?
There are 3 types of interests which are charged on the taxpayer under the following circumstances: It is the first part of a three-part series on section 234 where we shall discuss section 234A in detail. Are you running late in filing your income tax return?