As we had discussed in our earlier post that due date for charging interest u/s 234A has not been extended even when due date for filing Income tax return has been extended: Pay Self Assessment tax and file return for AY 2021-22 before 31.07.2021 or pay 2% interest per month thereafter: Taxontips
According to above provision 1% interest shall be charged from 01.08.2021 under section 234A of the Income tax act in case of individual where total tax payable is more than Rs. 1 lakh.
Further, while calculating the tax payable deduction of only Advance tax, TDS/ TCS, relief u/s 89, 90, 90A will be allowed and no deduction of self assessment tax paid before 31.07.2021 will be allowed.
The interest shall be charged u/s 234A, where tax payable is more than Rs. 1 lakh as computed above, even if full tax is paid before 31.07.2021 but Income tax return is not filed before due date and for section 234A still the due date for filing return of income is 31.07.2021 for people who are not liable to audit and whose normal due date is 31.07.2021.
As we know there are still various errors in Income tax return and Income tax e-filing website and hence many people are not still not able to file Income tax return or verify the same.
Further, still ITR 3, 5 is not available for filing on Income tax e-filing website as can be seen in screen shot above then is it valid or legit for the Income tax department and ministry of finance to charge Interest u/s 234A of the Income tax act as people are not able to file the income tax return because of the incompetency or errors by Income tax department on their e-filing website.
As of now no relaxation has been provided in interest u/s 234A let’s see if any relaxation is provided in future.
Do Comment below what are your thoughts.
Disclaimer: The views presented in the above article are personal views of our team and has no legal binding. For any legal opinion consult a tax professional.
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