Interest and Late Fee for filing of Return

Interest for Default in Furnishing Return of Income Under Section 234A

  • Interest under section 234A is attracted to failure to file a return of income on or before the due date under section 139(1) (i.e., interest is payable where an assessee furnishes the return of income after the due date or does not furnish the return of income.)
  • Simple interest @1% per month or part of the month is payable for the period commencing from the date immediately following the due date and ending on the following dates–
Where the return is furnished after the due datethe date returnoffurnishing ofthe
Where no return is furnishedthe date assessmentofcompletionof
  • The interest has to be determined on the amount of tax on total income as determined under section 143(1) or on regular assessment as decreased by the advance tax paid and any TCS, any relief of tax allowed under section 89 and any tax credit allowed to be set-off in accordance with section 115JD.
  • No interest under section 234A shall be charged on self-assessment tax paid by the assessee on or before the due date of filing of return.
  • The interest payable under section 234A shall be reduced by the interest, if any, paid on self-assessment under section 140A towards interest chargeable under section 234A.

Fee for Default in Furnishing Return of income Under Section 234F

Where a person is required to furnish a return of income under section 139, fails to do so within the prescribed time limit under section 139(1), he shall pay, by way of fee, a sum of

FeeCircumstances
5,000If the return is furnished on or before the 31st December of the assessment year;
10,000In any other case
However, if the total income of the person does not exceed ` 5 lakhs, the fees payable shall not exceed ` 1,000

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