The document discusses various sections under which interest is payable by or to the assessee. It summarizes the key details around sections like 234A, 234B, 234C and 234D which deal with interest for defaults in filing return, payment of advance tax, deferment of advance tax and excess refunds respectively. It provides details like applicable rates of interest, period of applicability and amount on which interest is calculated for different cases under these sections. The document also briefly discusses sections like 244A and 132B(4) pertaining to interest on delayed refunds and seized/requisitioned assets.

1. Shankar Bose
Inspector of Income-tax
MSTU, Puri

2.  Two Parts :
1. Interest payable by the Assessee,
2. Interest payable to the Assessee.

3. by the assessee
in the following cases :

4. - A. Interest for dafaults in furnishing of
the return of income
u/s 234 A,

5. - B. Interest for defaults in payment of
Advance tax
u/s 234 B ,

6. - C. Interest for deferment of payment of
Advance Tax
u/s 234 C,

7.  D. Interest for granting of Excess refund.
u/s 234 D.

8. - Interest When the assessee is deemed to be in
default.
u/s 220(2).

9.  Interest for failure to deduct and Pay TDS
u/s 201.

10.  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) ]

11.  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) ]

12.  Books of a/c with IT authority.
[ Intt u/s 234 A is not chargeable for delayed return ]

13.  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) ]

14.  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) ]

15. 1. On delayed refund
u/s 244A.

16. 2. 132B(4) ::
( Interest in respect of seized or requisitioned
assets)

17.  234 A , B , C ---------

18.  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.

19. From Due date to
Completion of assessment u/s 144

20.  Amount of tax determined u/s 143 (1)
Or

21. 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

22.  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.

23. 
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

24.  Intt for Deferment of Advance tax::::
If ‘A’ Under estimated installments of
advance Tax:
----Intt to be calculated as below :

25. 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

26.  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

27. 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

28.  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

29.  --------------->>>>>>>

30.  Section 234 D( applicable from June 01, 2003).

31.  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

32.  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

33.  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.

34.  TDS Default
 Default to 156 notice

35. --------------->>>

36. 1. 132B (4) :
Who shall pay : Central Government.
Rate of Interest : 0.5 % per month or part of a
month.

37.  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.

38.  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.

39. • 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)

40. 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.

41. THANK YOU
ALL