As per the notification dated 27/09/2019 CBDT has clearly notified that there is no extention for default in furnishing income tax return and shall attract interest u/s 234A of the Act. The extention is only for assessee subject to tax audit u/s 44AB and hence the extention is only for filing tax audit report and not for filing of return.
What it means?
If there is net tax payable as on 30/09/2019 and assessee fails to pay tax and file return as on 30/09/2019 than such assessee shall have to pay interest u/s 234A @ 1% per month or part of the month for delay beyond due date i.e. 30/09/2019.
However, it has been held by the Hon. Supreme court in CIT v/s Dr.Pranay Roy(2009) that interest u/s 234A, being compensatory in nature, shall be levied only when the tax has not been deposited on or before the due date of filing of return of income. Accordingly, where the entire amount of self assessment tax was paid on or before the due date for filing of return of income interest u/s 234A shall not be levied.
Hence, all assessees are advisable to pay self assessment tax by 30/09/2019 to avoid interest u/s 234A
In case of loss returns too 30/09/2019 is last date for claiming carry forward of losses.
In case of tax refund the above due date is not applicable.
Reference: https://www.incometaxindiaefiling.gov.in/eFiling/Portal/StaticPDF_News/Order-under-Section-119-of-the-IT-Act-1961-Extension-of-due-date.pdf
What it means?
If there is net tax payable as on 30/09/2019 and assessee fails to pay tax and file return as on 30/09/2019 than such assessee shall have to pay interest u/s 234A @ 1% per month or part of the month for delay beyond due date i.e. 30/09/2019.
However, it has been held by the Hon. Supreme court in CIT v/s Dr.Pranay Roy(2009) that interest u/s 234A, being compensatory in nature, shall be levied only when the tax has not been deposited on or before the due date of filing of return of income. Accordingly, where the entire amount of self assessment tax was paid on or before the due date for filing of return of income interest u/s 234A shall not be levied.
Hence, all assessees are advisable to pay self assessment tax by 30/09/2019 to avoid interest u/s 234A
In case of loss returns too 30/09/2019 is last date for claiming carry forward of losses.
In case of tax refund the above due date is not applicable.
Reference: https://www.incometaxindiaefiling.gov.in/eFiling/Portal/StaticPDF_News/Order-under-Section-119-of-the-IT-Act-1961-Extension-of-due-date.pdf
1 comment:
The order charging interest u/s 234A is illogical, illegal and discriminatory. Once due date u/s 139(1) is extended it is extended for all purposes including s. 44AB, s. 271B, s. 234A, s. 234F. Thereby asking to charge interest u/s 234A for the month of October 2019 is grossly violative of the provisions of the Income Tax Act itself and is beyond authority of law.
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