Sandeep Ahuja & Co.

Established in the year 1986, we are a leading chartered accountancy firm based in Delhi & NCR rendering comprehensive professional services which include statutory audit, internal audit, direct tax, transfer pricing, GST, bank audit, propriety audit, cost accounting, internal financial controls and risk advisory.

Thursday, February 12, 2015

No interest U/ S 234A is chargeable on Self Asst Tax Paid before due date

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.

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