www.Aaptaxlaw.com
 
 
 

What is Interest on excess refund? What is Fee for default in furnishing statements? Section 234D and 234E of Income Tax Act 1961

Interest on excess refund and Fee for default in furnishing statements are defined under section 234D and 234E of Income Tax Act 1961. Provisions under these Sections are :

Section 234D of Income Tax Act "Interest on excess refund"

Section 234D. (1) Subject to the other provisions of this Act, where any refund is granted to the assessee under sub-section (1) of section 143, and-

(a) no refund is due on regular assessment; or

(b) the amount refunded under sub-section (1) of section 143 exceeds the amount refundable on regular assessment, the assessee shall be liable to pay simple interest at the rate of one-half per cent on the whole or the excess amount so refunded, for every month or part of a month comprised in the period from the date of grant of refund to the date of such regular assessment.

 

(2) Where, as a result of an order under section 154 or section 155 or section 250 or section 254 or section 260 or section 262 or section 263 or section 264 or an order of the Settlement Commission under sub-section (4) of section 245D, the amount of refund granted under sub-section (1) of section 143 is held to be correctly allowed, either in whole or in part, as the case may be, then, the interest chargeable, if any, under sub-section (1) shall be reduced accordingly.

Explanation 1.-Where, in relation to an assessment year, an assessment is made for the first time under section 147 or section 153A, the assessment so made shall be regarded as a regular assessment for the purposes of this section.

Explanation 2.-For the removal of doubts, it is hereby declared that the provisions of this section shall also apply to an assessment year commencing before the 1st day of June, 2003 if the proceedings in respect of such assessment year is completed after the said date.

Section 234E of Income Tax Act "Fee for default in furnishing statements"

Section 234E. (1) Without prejudice to the provisions of the Act, where a person fails to deliver or cause to be delivered a statement within the time prescribed in sub-section (3) of section 200 or the proviso to sub-section (3) of section 206C, he shall be liable to pay, by way of fee, a sum of two hundred rupees for every day during which the failure continues.

(2) The amount of fee referred to in sub-section (1) shall not exceed the amount of tax deductible or collectible, as the case may be.

(3) The amount of fee referred to in sub-section (1) shall be paid before delivering or causing to be delivered a statement in accordance with sub-section (3) of section 200 or the proviso to sub-section (3) of section 206C.

(4) The provisions of this section shall apply to a statement referred to in sub-section (3) of section 200 or the proviso to sub-section (3) of section 206C which is to be delivered or caused to be delivered for tax deducted at source or tax collected at source, as the case may be, on or after the 1st day of July, 2012.

Income Tax Act 1961

What is the meaning Recovery by suit or under other law not affected? What is Interest for defaults in furnishing return of income? Section 232 and 234A of Income Tax Act 1961

What is Interest for defaults in payment of advance tax? What is Interest for deferment of advance tax? Section 234B and 234C of Income Tax Act 1961

What is Interest on excess refund? What is Fee for default in furnishing statements? Section 234D and 234E of Income Tax Act 1961

What is Relief to company in respect of dividend paid out of past taxed profits? What is Relief to certain charitable institutions or funds in respect of certain dividends? Section 236 and 236A of Income Tax Act 1961

What are Refunds? Who is Person entitled to claim refund in certain special cases? What is Form of claim for refund and limitation? Section 237, 238 and 239 of Income Tax Act 1961

What Refund on appeal, etc? What is the meaning of Correctness of assessment not to be questioned? What is Interest on delayed refunds? Section 240, 242 and 243 of Income Tax Act 1961

What is Interest on refund where no claim is needed? What is Interest on refunds? Section 244 and 244A of Income Tax Act 1961

What is Set off of refunds against tax remaining payable? What are Definitions in settlement of cases? Section 245 and 245A of Income Tax Act 1961

What is Income-tax Settlement Commission? What is Jurisdiction and powers of Settlement Commission? Section 245B and 245BA of Income Tax Act 1961

What is the meaning Vice-Chairman to act as Chairman or to discharge his functions in certain circumstances? What is the Power of Chairman to transfer cases from one Bench to another? Section 245BB and 245BC of Income Tax Act 1961

What is the meaning Decision to be by majority? How to proceed Application for settlement of cases? Section 245BD and 245C of Income Tax Act 1961

What is Procedure on receipt of an application under section 245C? What is Power of Settlement Commission to order provisional attachment to protect revenue? Section 245D and 245DD of Income Tax Act 1961

Home     About Us     Privacy Policy     Disclaimer    Contact Us  Sitemap