(1) Interest for Default in Furnishing Return of Income under Section 139(1) or (4) or in response to a Notice under Section 142(1) [Section 234A(1)]:
The assessee is liable to pay interest in the following cases:
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where the return of income is furnished after the due date specified under section 139(1); or
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where the return of income is not furnished by the assessee.
Rate of Interest:
Simple interest calculated @1% p.m. or part of the month.
Period for which Interest is payable:
The interest will be payable for the period commencing on the date immediately following the due date and would end on:
in case of (a) above, the date of furnishing the return of income; or
in case of (b) above, date of completion of assessment under section 144 (Best Judgement Assessment).
Amount on which interest is payable:
Interest is payable on the amount calculated as under:
Tax determined under section 143(1) or on regular assessment under sections 143(3)/144/147/153A
Less:
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Tax deducted/collected at source —
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Advance tax paid —
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Any relief/deduction of tax allowed under sections 90, 90A and 91 —
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Any tax credit allowed to be set off in accordance with the provisions of section 115JAA (MAT credit) or section 115JD (AMT credit)
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(2) Fee Payable for Late Filing of Return of Income [Section 234F(1)] :
Without prejudice to the provisions of this Act, where a person required to furnish a return of income under section 139, fails to do so within the time prescribed in section 139(1), he shall pay, by way of fee, a sum of,—
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Rs. 5,000, if the return is furnished on or before the 31st day of December of the assessment year;
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Rs. 10,000 in any other case:
However, the total income of the person does not exceed Rs.5,00,000, the fee payable under this section shall not exceed Rs. 1,000.
Prosecution:
Wilful failure to furnish return of income may also attract prosecution under section 276CC. |
