Section 234A
Interest for delay in filing return — Section 234A
Simple interest at 1% per month on tax payable for delay in filing the return.
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Charged automatically on filing or assessment
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Routine — ₹ 1,000 to ₹ 1,500
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What this section is
Section 234A levies simple interest at 1% per month or part thereof on the amount of tax payable on the income assessed (after reduced advance tax and TDS), for the period of delay in filing the return beyond the due date.
When it is issued
Computed in the 143(1) intimation or in the assessment order. There is no separate notice — it appears in the demand.
What you should do
- 1Check the start date and end date of the interest computation. Common errors include the wrong due date (especially where the CBDT extended the due date) and the wrong treatment of advance tax.
- 2If interest is overcharged, file a rectification under Section 154.
Documents typically needed
- Return acknowledgement showing date of filing
- Advance tax and TDS challans / certificates
- Computation showing correct interest amount
Common mistakes
- Paying without checking the dates — interest is one of the most error-prone CPC computations.
Educational reference only
This guide is general in nature and does not constitute legal or tax advice on a specific notice. For advice tailored to your situation, please use the CA-Vetted plan or consult your own professional adviser.
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