interest payable & receivable.cose
TRANSCRIPT
![Page 1: Interest payable & receivable.cose](https://reader034.vdocument.in/reader034/viewer/2022052523/5558a142d8b42aa6708b4f0a/html5/thumbnails/1.jpg)
Shankar BoseInspector of Income-tax
MSTU, Puri
![Page 2: Interest payable & receivable.cose](https://reader034.vdocument.in/reader034/viewer/2022052523/5558a142d8b42aa6708b4f0a/html5/thumbnails/2.jpg)
Two Parts :
1. Interest payable by the Assessee,
2. Interest payable to the Assessee.
![Page 3: Interest payable & receivable.cose](https://reader034.vdocument.in/reader034/viewer/2022052523/5558a142d8b42aa6708b4f0a/html5/thumbnails/3.jpg)
by the assessee
in the following cases :
![Page 4: Interest payable & receivable.cose](https://reader034.vdocument.in/reader034/viewer/2022052523/5558a142d8b42aa6708b4f0a/html5/thumbnails/4.jpg)
- A. Interest for dafaults in furnishing of the return of income
u/s 234 A,
![Page 5: Interest payable & receivable.cose](https://reader034.vdocument.in/reader034/viewer/2022052523/5558a142d8b42aa6708b4f0a/html5/thumbnails/5.jpg)
- B. Interest for defaults in payment of Advance tax
u/s 234 B ,
![Page 6: Interest payable & receivable.cose](https://reader034.vdocument.in/reader034/viewer/2022052523/5558a142d8b42aa6708b4f0a/html5/thumbnails/6.jpg)
- C. Interest for deferment of payment of Advance Tax
u/s 234 C,
![Page 7: Interest payable & receivable.cose](https://reader034.vdocument.in/reader034/viewer/2022052523/5558a142d8b42aa6708b4f0a/html5/thumbnails/7.jpg)
D. Interest for granting of Excess refund.
u/s 234 D.
![Page 8: Interest payable & receivable.cose](https://reader034.vdocument.in/reader034/viewer/2022052523/5558a142d8b42aa6708b4f0a/html5/thumbnails/8.jpg)
- Interest When the assessee is deemed to be in default.
u/s 220(2).
![Page 9: Interest payable & receivable.cose](https://reader034.vdocument.in/reader034/viewer/2022052523/5558a142d8b42aa6708b4f0a/html5/thumbnails/9.jpg)
Interest for failure to deduct and Pay TDS
u/s 201.
![Page 10: Interest payable & receivable.cose](https://reader034.vdocument.in/reader034/viewer/2022052523/5558a142d8b42aa6708b4f0a/html5/thumbnails/10.jpg)
140 A paid before Due date ; Return Submitted after due date :
--- Intt. u/s 234 A is not payable .
( Dr. Pranoy Roy V CIT [2002] 121 Taxman 314 ( Del) ]
![Page 11: Interest payable & receivable.cose](https://reader034.vdocument.in/reader034/viewer/2022052523/5558a142d8b42aa6708b4f0a/html5/thumbnails/11.jpg)
Intt. Must be charged in the asstt. Order.
“Charge Intt. As per law ” will not suffice.
[CIT V. Inchcape India (P) Ltd [2002] 124 Taxman 744( Del) ]
![Page 12: Interest payable & receivable.cose](https://reader034.vdocument.in/reader034/viewer/2022052523/5558a142d8b42aa6708b4f0a/html5/thumbnails/12.jpg)
Books of a/c with IT authority.
[ Intt u/s 234 A is not chargeable for delayed return ]
![Page 13: Interest payable & receivable.cose](https://reader034.vdocument.in/reader034/viewer/2022052523/5558a142d8b42aa6708b4f0a/html5/thumbnails/13.jpg)
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) ]
![Page 14: Interest payable & receivable.cose](https://reader034.vdocument.in/reader034/viewer/2022052523/5558a142d8b42aa6708b4f0a/html5/thumbnails/14.jpg)
Cash seized during search should be treated as Advance Tax for the Purpose of computation of Intt u/s 220(2) & sections 234 A,B,C.
[ Vipul D. Doshi V CIT (2001) 118 Taxman 30 ( Mum) ]
![Page 15: Interest payable & receivable.cose](https://reader034.vdocument.in/reader034/viewer/2022052523/5558a142d8b42aa6708b4f0a/html5/thumbnails/15.jpg)
1. On delayed refund
u/s 244A.
![Page 16: Interest payable & receivable.cose](https://reader034.vdocument.in/reader034/viewer/2022052523/5558a142d8b42aa6708b4f0a/html5/thumbnails/16.jpg)
2.132B(4) ::
( Interest in respect of seized or requisitioned assets)
![Page 17: Interest payable & receivable.cose](https://reader034.vdocument.in/reader034/viewer/2022052523/5558a142d8b42aa6708b4f0a/html5/thumbnails/17.jpg)
234 A , B , C ---------
![Page 18: Interest payable & receivable.cose](https://reader034.vdocument.in/reader034/viewer/2022052523/5558a142d8b42aa6708b4f0a/html5/thumbnails/18.jpg)
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.
![Page 19: Interest payable & receivable.cose](https://reader034.vdocument.in/reader034/viewer/2022052523/5558a142d8b42aa6708b4f0a/html5/thumbnails/19.jpg)
From Due date to Completion of assessment u/s
144
![Page 20: Interest payable & receivable.cose](https://reader034.vdocument.in/reader034/viewer/2022052523/5558a142d8b42aa6708b4f0a/html5/thumbnails/20.jpg)
Amount of tax determined u/s 143 (1)
Or
![Page 21: Interest payable & receivable.cose](https://reader034.vdocument.in/reader034/viewer/2022052523/5558a142d8b42aa6708b4f0a/html5/thumbnails/21.jpg)
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 , 115JD
![Page 22: Interest payable & receivable.cose](https://reader034.vdocument.in/reader034/viewer/2022052523/5558a142d8b42aa6708b4f0a/html5/thumbnails/22.jpg)
Intt for default for payment of Advance tax
When Intt is payable
Amt. On which intt. Is payable
Rate of Int Period for which intt. Is payable
‘A’ failed to pay Adv. Tax
Assessed Tax @ 1% for every month or part of a month
From 1st April of AY to dt of 143(1) or dt of Regular asstt.
Adv tax < 90 % of Assessed Tax
Assessed Tax minus Adv Tax
@ 1% for every month or part of a month
From 1st April of AY to dt of 143(1) or dt of Regular asstt.
![Page 23: Interest payable & receivable.cose](https://reader034.vdocument.in/reader034/viewer/2022052523/5558a142d8b42aa6708b4f0a/html5/thumbnails/23.jpg)
Assessed Tax : = Tax on T.I. [u/s 143 (1)] / Regular
assessment MINUS(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 be Set Off u./s 115 JAA , 115JD
![Page 24: Interest payable & receivable.cose](https://reader034.vdocument.in/reader034/viewer/2022052523/5558a142d8b42aa6708b4f0a/html5/thumbnails/24.jpg)
Intt for Deferment of Advance tax::::
If ‘A’ Under estimated installments of advance Tax:
----Intt to be calculated as below :
![Page 25: Interest payable & receivable.cose](https://reader034.vdocument.in/reader034/viewer/2022052523/5558a142d8b42aa6708b4f0a/html5/thumbnails/25.jpg)
When 234 C payable ?
@ of Intt Period of Intt
Amt. on which intt. Is payable
If Adv Tax paid( before Sept 15) < 30 % (a-b)
1% pm/part of a month
3 months 30 % ( a-b)-c
If Adv Tax paid( before DEC 15) < 60 % (a-b)
1% pm/part of a month
3 months 60% (a-b)-d
If Adv Tax paid( before MAR 15) < 100 % (a-b)
1% pm/part of a month
100% (a-b) -e
![Page 26: Interest payable & receivable.cose](https://reader034.vdocument.in/reader034/viewer/2022052523/5558a142d8b42aa6708b4f0a/html5/thumbnails/26.jpg)
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
![Page 27: Interest payable & receivable.cose](https://reader034.vdocument.in/reader034/viewer/2022052523/5558a142d8b42aa6708b4f0a/html5/thumbnails/27.jpg)
When 234 C payable ?
@ of Intt Period of Intt
Amt. on which intt. Is payable
If Adv Tax paid( before June 15) < 12 % (a-b)
1% pm/part of a month
3 months 15 % ( a-b)-c
If Adv Tax paid( before Sept 15) < 36 % (a-b)
1% pm/part of a month
3 months 45% (a-b)-d
If Adv Tax paid( before DEC 15) < 75 % (a-b)
1% pm/part of a month
3 months 75% (a-b)-d
If Adv Tax paid( before MAR 15) < 100 % (a-b)
1% pm/part of a month
100% (a-b) –e
![Page 28: Interest payable & receivable.cose](https://reader034.vdocument.in/reader034/viewer/2022052523/5558a142d8b42aa6708b4f0a/html5/thumbnails/28.jpg)
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
![Page 29: Interest payable & receivable.cose](https://reader034.vdocument.in/reader034/viewer/2022052523/5558a142d8b42aa6708b4f0a/html5/thumbnails/29.jpg)
--------------->>>>>>>
![Page 30: Interest payable & receivable.cose](https://reader034.vdocument.in/reader034/viewer/2022052523/5558a142d8b42aa6708b4f0a/html5/thumbnails/30.jpg)
Section 234 D( applicable from June 01, 2003).
![Page 31: Interest payable & receivable.cose](https://reader034.vdocument.in/reader034/viewer/2022052523/5558a142d8b42aa6708b4f0a/html5/thumbnails/31.jpg)
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 amount refundable on regular assessment
![Page 32: Interest payable & receivable.cose](https://reader034.vdocument.in/reader034/viewer/2022052523/5558a142d8b42aa6708b4f0a/html5/thumbnails/32.jpg)
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 Regular assessment
![Page 33: Interest payable & receivable.cose](https://reader034.vdocument.in/reader034/viewer/2022052523/5558a142d8b42aa6708b4f0a/html5/thumbnails/33.jpg)
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
regular assessment.
![Page 34: Interest payable & receivable.cose](https://reader034.vdocument.in/reader034/viewer/2022052523/5558a142d8b42aa6708b4f0a/html5/thumbnails/34.jpg)
TDS Default Default to 156 notice
![Page 35: Interest payable & receivable.cose](https://reader034.vdocument.in/reader034/viewer/2022052523/5558a142d8b42aa6708b4f0a/html5/thumbnails/35.jpg)
--------------->>>
![Page 36: Interest payable & receivable.cose](https://reader034.vdocument.in/reader034/viewer/2022052523/5558a142d8b42aa6708b4f0a/html5/thumbnails/36.jpg)
1. 132B (4) :
Who shall pay : Central Government.
Rate of Interest : 0.5 % per month or part of a
month.
![Page 37: Interest payable & receivable.cose](https://reader034.vdocument.in/reader034/viewer/2022052523/5558a142d8b42aa6708b4f0a/html5/thumbnails/37.jpg)
Period Involved : Calculated from the date immediately following the expiry of the period of 120 days from the date on which the last Authorization for Search u/s 132 or Requisition u/s 132A was Executed … To… the date of completion of assessment u/s 153 A or Chapter XIV-B( Special Procedure for assessment of search cases.
![Page 38: Interest payable & receivable.cose](https://reader034.vdocument.in/reader034/viewer/2022052523/5558a142d8b42aa6708b4f0a/html5/thumbnails/38.jpg)
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 of assessment.
![Page 39: Interest payable & receivable.cose](https://reader034.vdocument.in/reader034/viewer/2022052523/5558a142d8b42aa6708b4f0a/html5/thumbnails/39.jpg)
• Section 244A
1. 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.
![Page 40: Interest payable & receivable.cose](https://reader034.vdocument.in/reader034/viewer/2022052523/5558a142d8b42aa6708b4f0a/html5/thumbnails/40.jpg)
2. Refund is out of tax other than TDS/TCS/ADVANCE TAX.
-- Then intt is payable from the date of notice of Demand ( Or Assessment Order ) to the date of signing of refund voucher.
![Page 41: Interest payable & receivable.cose](https://reader034.vdocument.in/reader034/viewer/2022052523/5558a142d8b42aa6708b4f0a/html5/thumbnails/41.jpg)
THANK YOU ALL