Latest Query & Reply

I have received one order under section 143(1) where assess has liabilty of 31,490/- and against the same tds credit of 42,000/- . While processing the order they have charged interest u/s 234 b 8,687/- and 234 c 6,266/-

Whether charging of this interest is as per the law.

Reply

Interest u/s 234A and 234B of Income Tax Act is calculated on amount of tax determined u/s 143(1), 143(3)/144/147/153A reduced by TDS & Advance tax if any.

Therefore, charging of interest in the above case is not as per law.