Income-tax return for F.Y. 2020-21 is required to be filed within the following due dates-
|All assesses (individuals, Hindu undivided family/HUF, the body of individuals and association of persons, etc) whose accounts are not required to be audited.||31st December 2021|
Any entity or persons below whose accounts are required to be audited –
An individual assessee and entities like a sole proprietary firm, partnership, company etc., whose accounts are required to be audited
|15th March 2022|
|All assessees who need to furnish report under Section 92E (for the taxpayers who have undertaken international financial transactions during the relevant financial year)||15th March 2022|
If the Income-tax return is not filed within these due dates, the taxpayer is required to pay an additional interest before filing his Income-tax return.
Other key points for Interest U/s. 234A:-
- Interest is payable at 1% of the tax liability.
- The period for which interest is calculated will start immediately from the due date and end on the date of filing of return. However, if the self-assessment tax exceeds Rs. 1 lakh then the liability to pay interest u/s 234A in such case is calculated from the original due date i.e 31st July only.
- Tax liability is calculated as follows-
|Tax payable on total income||XXX|
|Less: Amount of Advance tax paid||XXX|
|Tax deducted at source||XXX|
|Tax relief, if any||XXX|
|Credit of Alternate Minimum Tax||XXX|
|= Tax Liability||XXX|
- This interest is compulsory. Hence it cannot be reduced or waived by any Income-tax authority.
- If the taxpayer fails to file his return within due date, interest U/s. 234A is charged automatically. Hence, the Income-tax department is not required to intimate taxpayers about the payment of this interest.
- This interest is charged if the taxpayer fails to file his return within the due date, however, if the taxpayer has paid all his taxes before the due date but files his return after the due date then interest U/s. 234A shall not be charged. The logic behind this is no tax was payable by the taxpayer at the time of filing of return hence no interest is levied.