Section 234 of Income-Tax Act, 1961

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Section 234 of Income-Tax Act, 1961 deals with Interest for defaults in payment of advance tax

OMITTED BY THE DIRECT TAX LAWS (AMENDMENT) ACT, 1987, W.E.F. 1-4-1989

Contents

From the Act

  • Tax paid by deduction or advance payment.-Omitted by the Direct Tax Laws (Amendment) Act, 1987, w.e.f 1-4-1989.
  • Prior to the omission, section 234, as amended by the Taxation Laws (Amendment) Act, 1970, w.r.e.f 1-4-1968/w.e.f. 1-4-1971, read as under: "234. Tax- paid by deduction or advance payment.-Tax paid or deemed to have been paid under the provisions of Chapter XVIIB or Chapter XVIIC in respect of any income provisionally assessed under section 141A shall be deemed to have been paid towards the provisional assessment."
  • F.-Interest chargeable in certain cases - Inserted by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989.

Recent Cases / Related Cases / Case Law

  • April 2011: An assessee whose income is liable to be deducted at source is not liable to pay advance tax u/s 208 and consequently is not liable to pay interest u/s 234B (FB).
    • Where assessee’s income is chargeable under the head ‘salaries’, the person responsible for paying any income chargeable under the head ‘salaries’ shall at the time of paying, deduct income tax at source and failure on his part entails an obligation to pay interest u/s 234B in order to compensate the loss incurred to the revenue and that upon failure on the part of the employer to deduct tax at source, the assessee only becomes liable to pay tax directly u/s 191 and does not become liable to pay interest u/s 234B - [2011] 10-269 (Uttarakhand)(FB)

Other related Sections from the Act

Sections of the Indian Income Tax Act, 1961


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