Transcript of "Interest payable & receivable.bose"
InterestPayable/ReceivablebyShankar BoseInspector of Income-taxMSTU, Puri
There are tow Parts :1. Interest payable by the Assessee,2. Interest payable to the Assessee. Interest Payable by the Assessee by the assessee in the following cases : Intt. Payable by the AssesseeA. Interest for dafaults in furnishing of the return of income u/s 234 A,B. Interest for defaults in payment of Advance tax u/s 234 B ,C. Interest for deferment of payment of Advance Tax u/s 234 C,D. Interest for granting of Excess refund. …u/s 234 D.Interest When the assessee is deemed to be in default….. u/s 220(2). Interest for failure to deduct and Pay TDS….. u/s 201. Some case laws : 140 A paid before Due date ; Return Submitted after due date :--- Intt. u/s 234 A is not payable .( Dr. Pranoy Roy V CIT  121 Taxman 314 ( Del) ] Intt. Must be charged in the asstt. Order.“Charge Intt. As per law ” will not suffice.[CIT V. Inchcape India (P) Ltd  124 Taxman 744( Del) ] Books of a/c with IT authority.[ Intt u/s 234 A is not chargeable for delayed return ] Issue of notice u/s 142 (1) does not give the AO jurisdiction to levy intt. u/s 234 A.[ CIT V Ranchi Club Ltd.[(2001) 114 Taxman 414 ( SC) ]When Intt is payable Amt. On which intt. Is payable Rate of Int Period forwhich intt. Ispayable‘A’ failed to payAdv. TaxAssessed Tax @ 1% for every month or partof a monthFrom 1stAprilof AY to dt of143(1) or dtof Regularasstt.Adv tax < 90 % ofAssessed TaxAssessed Tax minus Adv Tax @ 1% for every month or partof a monthFrom 1stAprilof AY to dt of143(1) or dtof Regularasstt.
Cash seized during search should be treated as Advance Tax for the Purpose of computation ofIntt u/s 220(2) & sections 234 A,B,C.[ Vipul D. Doshi V CIT (2001) 118 Taxman 30 ( Mum) ] Interest Payable to the Assessee :1. On delayed refund ……… u/s 244A. Interest Payable to the Assessee :2. 132B(4) ::( Interest in respect of seized or requisitioned assets) 234 A Default in Furnishing of Return of Income before due date : Rate of Interest : @ 1 % p.m. or part of a month.Period : From Due date to date of Furnishing of the Return. When actually no Return has been furnished :From Due date to Completion of assessment u/s 144 Interest to be calculated on : Amount of tax determined u/s 143 (1)Or when Regular Asstt. Has been made Tax assessed[ Minus ](1) Advance Tax ,(2) TDS/TCS ,(3) Relief/Deduction of tax allowed u/s 90,90A,91 or any Tax Credit allowed to be Set Off u./s 115 JAA ,115JD234 B Intt for default for payment of Advance tax Assessed Tax : =Tax on T.I. [u/s 143 (1)] / Regular assessmentMINUS(1) TDS/TCS ,(2) From AY 2007-08 any Relief/Deduction of tax allowed u/s 90,90A,91 or any Tax Credit allowed to beSet Off u./s 115 JAA , 115JD234 C Intt for Deferment of Advance tax::::If ‘A’ Under estimated installments of advance Tax:----Intt to be calculated as below : In case of non-corporate assessee
When 234 C payable ? @ of Intt Period of Intt Amt. onwhichintt. IspayableIf Adv Tax paid( before Sept 15)< 30 % (a-b)1% pm/part of a month 3 months 30 % (a-b)-cIf Adv Tax paid( before DEC 15)< 60 % (a-b)1% pm/part of a month 3 months 60%(a-b)-dIf Adv Tax paid( before MAR 15)< 100 % (a-b)1% pm/part of a month 100%(a-b) -e a. : Tax returned by “a”. b. : TDS / TCS . c. : Adv. Tax Before SEPTEMBER 15. d. : Adv. Tax Before DECEMBER 15 e. : Adv. Tax Before MARCH 15 In case of corporate assesseeWhen 234 C payable ? @ of Intt Period of Intt Amt. on which intt. IspayableIf Adv Tax paid( before June 15)< 12 % (a-b)1% pm/part of a month 3 months 15 % ( a-b)-cIf Adv Tax paid( before Sept 15)< 36 % (a-b)1% pm/part of a month 3 months 45% (a-b)-dIf Adv Tax paid( before DEC 15)< 75 % (a-b)1% pm/part of a month 3 months 75% (a-b)-dIf Adv Tax paid( before MAR 15)< 100 % (a-b)1% pm/part of a month 100% (a-b) –e
a. : Tax returned by “a”. b. : TDS / TCS , etc. c. : Adv. Tax Before June 15. d. : Adv. Tax Before September 15 e. : Adv. Tax Before December 15 f. : Adv. Tax Before March 15 Interest on Excess Refund 234D : Interest on Excess Refund Section 234 D( applicable from June 01, 2003). Interest u/s 234 D is attracted in any of the Two cases :1] Where Refund is granted u/s 143 (1) but no refund is due on regular assessment.2] Where Refund is granted u/s 143 (1) But the refund so granted exceeds the amountrefundable on regular assessment Computation of Interest u/s 234D: Rate of Interest :: 0.5 % p.m. or part of a Month. Period for which intt. Payable :: From the date of grant of refund to the date of Regularassessment Amount on which Intt. Is payable::[Case1] : on Whole of amount.[Case 2] : On the Excess amount refunded u/s 143(1) over the amount refundable on regularassessment. 201(1A), 220(2) TDS Default Default to 156 notice Interest Payable to theAssessee ::132B(4)-Interest Payable to the Assessee ::1. 132B (4) :Who shall pay : Central Government.Rate of Interest : 0.5 % per month or part of a month. 132 B ( 4) :Interest Payable to the Assessee ::contd. Period Involved : Calculated from the date immediately following the expiry of the period of120 days from the date on which the last Authorization for Search u/s 132 or Requisition u/s132A was Executed … To… the date of completion of assessment u/s 153 A or Chapter XIV-B(Special Procedure for assessment of search cases. 132 B (4)Interest Payable tothe Assessee ::contd. Amount on which interest to be paid :Excess amount i.e. Amount seized or requisitioned[ MINUS ]Amount already Released [ MINUS ]
The amount required to meet all existing liabilities and liability determined on completion ofassessment.• Interest Payable to the Assessee ::• Section 244A1. Refund out of TDS, TCS & Advance Tax.244A(1)(a)– Refund is not less than 10% of assessed tax. 244A(1)(a)– Interest is to be given from the first day of the AY to the date of granting of refund.2. Refund is out of tax other thanTDS/TCS/ADVANCE TAX.-- Then intt is payable from the date of notice of Demand ( Or Assessment Order ) to the date ofsigning of refund voucher.THANK YOU