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.
Last Date of Section 139(1)
- Non Audit Cases: 31st July
- Audit Cases: 31st Oct,
Because of covid-19 CBDT dated May 20th, 2021has prolonged the last date for furnishing the ITR up to 30th Sep 2021 (Non-Audit Cases) and 30th Nov 2021(Audit Cases) wide Circular No. 9 of 2021 Dated 20th May 2021 or Order [F.No.225/49/2021-ITA-II].
Tax Payable = Tax On Total Income-TDS & Relief under section 89/90/90A
Thus it is clear under the section 234A with 139(1), a taxpayer is subject to furnish the interest u/s 234A if:
- He is liable to furnish the tax
- He does not furnish the ITR up to 30th Sep 2021(Non-Audit Case) or 30th Nov 2021(Audit Cases)
According to Circular No. 9 of 2021 Dated 20th May 2021 or Order [F.No.225/49/2021-ITA-II] if the tax paid by the taxpayer is more than Rs 1,00,000 then for the intention of the section 234A due date extension is not applicable on him and Interest will be charged from 1st Aug 2021(Non-Audit Cases) or 1st Dec 2021(Audit Cases) according to the case might be but he can furnish the return up to Sept 30th, 2021 and Nov 30th, 2021 according to the case.
Note: the interest shall be charged up to date of furnishing of the return.
Note: If the taxpayer pays all the outstanding tax demand post to the last date but do not furnish the return:
- In this scenario, the taxpayer shall be entitled to furnish the interest u/s 234A on tax payable till the date of filing the return.
Let’s See the Same from the Illustrations:
- Tax On Total Income = 241021
- Relief U/s 89/90/90A = 15000
- TDS = 25000
- Date Of Filing of Return = 02/08/2021
- INTEREST U/S 234A:
- Amount on which interest to be calculated: 241021-15000-25000 = 201021
- Period 1st August 2021 to 2nd August 2021 i.e. 1 month
Conclusion for Point 2: As the tax filing is Rs 2,01,021 which exceeds Rs 1,00,000 so according to Circular No. 9 of 2021 on 20th May 2021 the last date for computing the interest U/s 234A shall be 31st July so in the same case the interest charged shall from the subsequent day of the original last date that is from 1st August 2021.
- The tax on the total income = 241021
- Relief U/s 89/90/90A = 15000
- TDS = 25000
- Date Of Filing of Return = 02/08/2021
- Self-Assessment Tax Paid On 01st Aug 2021 = 203027
- INTEREST U/S 234A:
- Amount on which interest to be calculated: 241021-15000-25000 = 201021
- Period 1ST Aug 2021 To 2nd Aug 2021 i.e. 1 month
The tax furnished post to the last date is not acknowledged for the intention of computing the interest u/s 234A
Conclusion for Point 3: As the tax furnished is Rs 201021 is more than Rs 100000 thus according to Circular No. 9 of 2021 on 20th May 2021 the last date for computing the interest u/s 234A shall be July 31st. Hence it is in the case interest shall be charged from the subsequent day of the original last date that is from the 1st Aug 2021.
Conclusion
| CASE I: Tax payable does exceed INR 100000 | CASE II: Tax Payable does exceed INR 100000 |
| Interest will be charged Form 1st Oct 2021 or 1st Dec 2021 as the case Maybe to date of return filing | Interest will be charged Form 1ST August 2021 or 1st November 2021 as the case Maybe to date of return filing |
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An assessee filed return declaring nil income for AY 2020-21 on 30.3.2021 which due date 31.7.2020.
Later on in compliance of notice issued on 15.10.2021 (30 days) u/s 153C, assessee declared nil income through filling ITR on 25.3.2022.
AO made addition of Rs. 1 crore u/s 69 and AI of assessee was assessed Rs. 1 crore.
Assessee was charged interest u/s 234A for 5 months (11/21 to 3/22) in ITNS.
Whether interest u/s 234A will also be charged for the period 8/20 to 3/21 (8 months) or not as original IT u/s 139(i) was filled delay with 8 months after due date which interest is to be calculated on the basis of assessed tax.
i have a query
for AY 21-22 the due date was extended from October 2021 to March 2022, we have paid the tax in the month of december 2021 but filled the return on march 2022, so till what date 234A interest would be liable to be paid ?
Please reply my above QUERRY and advise how I get paid amout of 234A 2290/- as REFUND FROM INCOME TAX DEPTT.
Sir my tax payable on 31/07/2021 is Rs.114000 because of late 16 no.form for Bank interest and pension and also due to portal problem 26AS ALSO NOT GENERATED UPTO 31/08/2021 AS SUCH MY TAX LIABILTY IS MORE THAN ONE LAKH. BECAUSE THE TDS ALSO DEDUCTED @7.5 INSTEAD OF 10% OF INCOME. THE BANK ALSO NOT TAKEN INTEREST AND PENSION TOGETHER BEING SAME PAN AND THEY NOT DEDUCTED TDS ON PENSION.WHEN MY LIABILTY IS MORE THAN 100000 I CONTACTED IT HRLPLINE NO.18004190025 THEY SAID AS YOU ARE SENIOR CITIZEN NO INTT IS PAYABLE 234A IT SHOW DUE TO PORTAL PROBLEM AND WILL CORRECT ON 15 SEPT.2021. IN THE MEAN TIME I pay 100000 DO THAT MY TAX BELOW 100000 ONLY 15000 IN SEPT. BUT IN SEPT INTEREST U/S 234A SHOW RS.2290. AGAIN CONTACTED THEY SAID STILL THERE IS PROBLEM. The protal show my wrong interest as for Aug. Iris 1145 but in sept my tax payable is only 15000 and the must charge 1145+150 of sept. 1295 instead of 2290. Now fearing that if I not submit return before 30/09/2021 it may charge for Oct.2021 isubmit the