Interest and Penalties under Income Tax - Interest for late filing of Income Tax Return
Interest and Penalties under Income Tax - Interest for late filing of Income Tax Return
The Income tax act has provisions for various fines, fees, interest and penalties for those people who default in their obligations of paying advance taxes on time, filing returns on time, depositing of TDS and other taxes within the correct period etc. In this ripple, we shall discuss the fines and interest covered by section 234 (A through F) of the Income Tax Act.
234A Interest for defaults in furnishing return of income
This section applies if a person files his Income tax return after the due date specified by the department. The interest under this section is 1% simple interest on the tax liability for every month or part of month after due date
For example, due date for filing return of Income for Individuals is
31st July, 2019. So, if a person files his return of Income on 15 of September, and his tax liability is Rs 50000.
Thus, interest under this section would be (50000 * 0.01 * 2) = Rs 1,000.
Part of month means that if there is a delay of 1 months and 1 day, it will be considered as 2 months
