Interest under Income Tax Act
Interest under Income Tax Act
| PARTICULARS | 234A | 234B | 234C | 234D | 220(2) |
| NATURE OF DEFAULT | DELAY OR DEFAULT IN FILING RETURN OF INCOME U/S 139(1) OR U/S 142(1) | DEFAULT IN PAYMENT OF ADVANCE TAX | DEFEREMENT OF ADVANCE TAX | EXCESS REFUND | DELAY IN PAYMENT OF AMOUNT SPECIFIED IN NOTICE OF DEMAND |
| APPLICABILITY | Return of income of assesseeA) is furnished after the due date of filing return orB) is not furnished. | Assessee liable to pay Advance Tax hasA) not paid orB) paid less than 90% of Assessed tax | Assessee liable to pay Advance Tax hasA) not paidB) short paidany instalments within the due date of payment of such tax. | Any refund is granted to the assessee u/s 143(1) –A) No refund is due on regular assessment;B) The amount refunded exceeds the amount of refund due on regular assessment | The amount specified in notice of demand is -not paid within the period limited u/s 220(1) – usually 30 days from the service of notice u/s 156. |
| AMOUNT | Assessed Tax as reduced by TDS, TCS, Advance Tax and Self-Assessment tax paid before the due date of filing return u/s 139(1) and Tax relief u/s 90, 90A and 91 and MAT credit allowable u/s 115JAA. | Assessed Tax as reduced by TDS, TCS, Advance Tax and Tax relief u/s 90, 90A and 91 and MAT credit allowable u/s 115JAA. | Instalments of Advance Tax u/s 208 as reduced by the amount paid determined on returned income. | The whole or excess amount of refund | The amount specified in notice of demand. |
| PERIOD – COMMENCING ON | the Due Date of filing return u/s 139(1) | the 1st day of April of the year immediately following the ‘previous year’ | In case ofCorporate assessees-3 Months for First, Second & Third Installments;1 Month for Last InstallmentIn case of Non-Corporate assessees –3 Months for First & Second Installment
1 Month for Last Installment |
The Date of grant of refund | The Date of payment specified in the Notice of Demand |
| PERIOD – ENDING ON | the Date of Filing return; orwhere no return is furnished – the date of completion of assessment u/s 144. | the Date of determination of total income u/s 143(1) / 143(2) /144.However, relief u/s 234B(2) is provided in respect of tax paid u/s 140A (Self Assessment Tax), in which case – the period will end on the Date of payment of tax – to the extent of amount paid. | The Date of regular assessment | The Actual Date of payment. | |
| RATE OF INTEREST | simple interest @ 1.00 % per month or part thereof | simple interest @ 1.00 % per month or part thereof | simple interest @ 1.00 % per month or part thereof | simple interest @ 0.5 % per month or part thereof | simple interest @ 1.00 % per month or part thereof |
