Interest payable for non filing of Income-tax return (Section 234A)

Income-tax return for F.Y. 2015-16 is required to be filed within the following due dates-

Particulars Due date
Company 30th November
Taxpayer who is having Tax audit for his business 30th November
Other taxpayers 31st July

If the Income-tax return is not filed within these due dates, taxpayer is required  to pay an additional interest before filing his Income-tax return.

Other key points for Interest U/s. 234A:-

  1.  Interest is payable at 1% of the tax liability.
  2. The period for which interest is calculated will start immediately from the due date and end on the date of filing of return.
  3. Tax liability is calculated as follows-
Particulars Amount
Tax payable on total income XXX
Less: Amount of Advance tax paid XXX
       Tax deducted at source XXX
       Tax relief, if any XXX
Credit of Alternate Minimum Tax XXX
=       Tax Liability XXX
  1. This interest is compulsory. Hence it cannot be reduced or waived by any Income-tax authority.
  2. If the taxpayer fails to file his return within due date, interest U/s. 234A is charged automatically. Hence, Income-tax department is not required to intimate taxpayer about payment of this interest.
  3. This interest is charged if taxpayer fails to file his return within due date, however if taxpayer has paid all his taxes before the due date but files his return after the due date then interest U/s. 234A shall not be charged. The logic behind this is no tax was payable by the taxpayer at the time of filing of return hence no interest is levied.

Click here to know about interest U/s. 234B.

Click here to know about interest U/s. 234C.

Summary
Article Name
Interest payable for non filing of Income-tax return (Section 234A)
Description
If the Income-tax return is not filed within due dates, taxpayer is required to pay an additional interest before filing his Income-tax return. Interest U/s 234A is charged if taxpayer fails to file his return within due date
Author
Publisher Name
myITreturn
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