The CBDT vide
CircularNo. 2/2015 dated 10/02/2015 has clarified that No interest U/ S 234A is chargeable on Self-Asst. Tax paid
before due date of filing
of return. Interest
U/S 234A of the Income-tax Act, is charged in case of default in
furnishing return of income by the assessee.
The interest is levied on
the amount of tax payable on the total income, as reduced by the amount of
advance tax, TDS/TCS at the specified rate. The interest is being charged on
the amount of Self-Asst Tax paid by the assessee even before the due date of
filing of return as self-assessment tax is not mentioned as a component of tax
to be reduced from the amount on which interest under section 234A of the Act
is chargeable, The CBDT has decided that
no interest under section 234A of the Act is chargeable on the amount of
self-assessment tax paid by the assessee before the due date of filing of
return of income.
