Interest payable & receivable.cose

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Interest payable & receivable.cose

  1. 1. Shankar BoseInspector of Income-taxMSTU, Puri
  2. 2.  Two Parts :1. Interest payable by the Assessee,2. Interest payable to the Assessee.
  3. 3. by the assesseein the following cases :
  4. 4. - A. Interest for dafaults in furnishing ofthe return of incomeu/s 234 A,
  5. 5. - B. Interest for defaults in payment ofAdvance taxu/s 234 B ,
  6. 6. - C. Interest for deferment of payment ofAdvance Taxu/s 234 C,
  7. 7.  D. Interest for granting of Excess refund.u/s 234 D.
  8. 8. - Interest When the assessee is deemed to be indefault.u/s 220(2).
  9. 9.  Interest for failure to deduct and Pay TDSu/s 201.
  10. 10.  140 A paid before Due date ; Return Submittedafter due date :--- Intt. u/s 234 A is not payable .( Dr. Pranoy Roy V CIT [2002] 121 Taxman 314( Del) ]
  11. 11.  Intt. Must be charged in the asstt. Order.“Charge Intt. As per law ” will not suffice.[CIT V. Inchcape India (P) Ltd [2002] 124Taxman 744( Del) ]
  12. 12.  Books of a/c with IT authority.[ Intt u/s 234 A is not chargeable for delayed return ]
  13. 13.  Issue of notice u/s 142 (1) does not give the AOjurisdiction to levy intt. u/s 234 A.[ CIT V Ranchi Club Ltd.[(2001) 114 Taxman 414( SC) ]
  14. 14.  Cash seized during search should be treated asAdvance 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) ]
  15. 15. 1. On delayed refundu/s 244A.
  16. 16. 2. 132B(4) ::( Interest in respect of seized or requisitionedassets)
  17. 17.  234 A , B , C ---------
  18. 18.  Default in Furnishing of Return of Incomebefore due date : Rate of Interest : @ 1 % p.m. or part of amonth.Period : From Due date todate of Furnishing of the Return.
  19. 19. From Due date toCompletion of assessment u/s 144
  20. 20.  Amount of tax determined u/s 143 (1)Or
  21. 21. Tax assessed[ Minus ](1) Advance Tax ,(2) TDS/TCS ,(3) Relief/Deduction of tax allowed u/s 90,90A,91 orany Tax Credit allowed to be Set Off u./s 115JAA , 115JD
  22. 22.  Intt for default for payment of Advance taxWhen Intt ispayableAmt. Onwhich intt. IspayableRate of Int Period forwhich intt. Ispayable‘A’ failed to payAdv. TaxAssessed Tax @ 1% for everymonth or part ofa monthFrom 1stApril ofAY to dt of143(1) or dt ofRegular asstt.Adv tax < 90 %of Assessed TaxAssessed Taxminus Adv Tax@ 1% for everymonth or part ofa monthFrom 1stApril ofAY to dt of143(1) or dt ofRegular asstt.
  23. 23. Assessed Tax : =Tax on T.I. [u/s 143 (1)] / Regular assessmentMINUS(1) TDS/TCS ,(2) From AY 2007-08 any Relief/Deduction of taxallowed u/s 90,90A,91 or any Tax Credit allowedto be Set Off u./s 115 JAA , 115JD
  24. 24.  Intt for Deferment of Advance tax::::If ‘A’ Under estimated installments ofadvance Tax:----Intt to be calculated as below :
  25. 25. When 234 Cpayable ?@ of Intt Period of Intt Amt. on whichintt. Is payableIf Adv Tax paid( before Sept 15)< 30 % (a-b)1% pm/part of amonth3 months 30 % ( a-b)-cIf Adv Tax paid( before DEC 15)< 60 % (a-b)1% pm/part of amonth3 months 60% (a-b)-dIf Adv Tax paid( before MAR 15)< 100 % (a-b)1% pm/part of amonth100% (a-b) -e
  26. 26.  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
  27. 27. When 234 Cpayable ?@ of Intt Period of Intt Amt. on whichintt. Is payableIf Adv Tax paid( before June 15)< 12 % (a-b)1% pm/part of amonth3 months 15 % ( a-b)-cIf Adv Tax paid( before Sept 15)< 36 % (a-b)1% pm/part of amonth3 months 45% (a-b)-dIf Adv Tax paid( before DEC 15)< 75 % (a-b)1% pm/part of amonth3 months 75% (a-b)-dIf Adv Tax paid( before MAR 15)< 100 % (a-b)1% pm/part of amonth100% (a-b) –e
  28. 28.  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
  29. 29.  --------------->>>>>>>
  30. 30.  Section 234 D( applicable from June 01, 2003).
  31. 31.  Interest u/s 234 D is attracted in any of the Twocases :1] Where Refund is granted u/s 143 (1) butno refund is due on regular assessment.2] Where Refund is granted u/s 143 (1) Butthe refund so granted exceeds theamount refundable on regular assessment
  32. 32.  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 thedate of Regular assessment
  33. 33.  Amount on which Intt. Is payable::[Case1] : on Whole of amount.[Case 2] : On the Excess amount refundedu/s 143(1) over the amount refundable onregular assessment.
  34. 34.  TDS Default Default to 156 notice
  35. 35. --------------->>>
  36. 36. 1. 132B (4) :Who shall pay : Central Government.Rate of Interest : 0.5 % per month or part of amonth.
  37. 37.  Period Involved : Calculated from the dateimmediately following the expiry of the period of120 days from the date on which the lastAuthorization for Search u/s 132 or Requisition u/s132A was Executed … To… the date ofcompletion of assessment u/s 153 A orChapter XIV-B( Special Procedure forassessment of search cases.
  38. 38.  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 liabilitiesand liability determined on completion ofassessment.
  39. 39. • Section 244A1. Refund out of TDS, TCS & AdvanceTax.244A(1)(a)– Refund is not less than 10% ofassessed tax.244A(1)(a)
  40. 40. 2. Refund is out of tax other thanTDS/TCS/ADVANCE TAX.-- Then intt is payable from the date of notice ofDemand ( Or Assessment Order ) to the date ofsigning of refund voucher.
  41. 41. THANK YOUALL

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