Interest Established in the IT Department - Section 234A

The Income Tax Act stipulates the provisions of the dates which must be accompanied by the inclusion of a refund for the entire year of assessment under Section 139. Unlike before, if you delay or fail to complete it there are some legal consequences. Non-compliance with income tax laws often has serious consequences such as paying interest based on Section 234 of the Income Tax Act.

Updated on:  
13min

1. Types of Interest

There are 3 different interests under section 234: Delays in completing Tax Returns - Section 234A Advance Tax Payment Delays - Section 234B Deferred Tax Payment - Section 234C

Frequently Asked Questions

Q- Illustration

Say, your remaining tax amount on FY 2018-19 is Rs 1 lakh (prepaid tax and TDS if applicable) and you submit your refund by March 31, 2020 instead of 31 August 2019, the deadline to introduce income tax. return of FY 2018-19. You are now 7 months late in your tax payment. Interest = 100,000 x 1% x 7 = Rs. 7,000 This Rs. 7,000 is more than the amount of tax you will be paying anywhere. If you do not include your refund at all, you will have to pay 1% interest until the end of the testing year which is 31 March.

 

CEO Krishna Gopal

Krishna Gopal Varshney is a Chartered Accountant by profession & entrepreneur by passion. He is the co-founder & CEO of Myitronline.com. Myitronline is amongst the top emerging startups of Asia and authorized ERI by the Income Tax Department. A dedicated and tireless Expert Service Provider for the clients seeking tax filing assistance and all other essential requirements associated with Business/Professional establishment. Connect to us and let us give the Best Support to make you a Success. ”

Krishna Gopal Varshney
Co-founder & CEO