Amendment of section 234B.
83. In section 234B of the Income-tax Act, in sub-section (1), in Explanation 1, in clause (v), after the word, figures and letters “section 115JAA”, the words, figures and letters “or section 115JD” shall be inserted with effect from the 1st day of April, 2013.
Notes on Clauses:
Clause 83 of the Bill seeks to amend section 234B of the Income-tax Act relating to interest for defaults in payment of advance tax.
The existing provisions of sub-section (1) of the aforesaid section 234B provides that the assessee is liable to pay simple interest at the rate of one per cent. for every month or part of the month on the amount of advance tax which falls short of assessed tax.
Explanation 1 to the said sub-section defines the “assessed tax” which means the tax on the total income determined under sub-section (1) of section 143 and where a regular assessment is made, the tax on the total income determined under such regular assessment as reduced by the amount of any tax deducted or collected at source; any relief of tax allowed under section 90; any relief of tax allowed under section 90A; any deduction from the Indian income-tax payable, allowed under section 91; and any tax credit allowed to be set off in accordance with the provisions of section 115JAA.
It is proposed to insert “or section 115JD”, after “section115JAA” in clause (v) of Explanation 1 to sub-section (1) of the aforesaid section so as to provide for reduction of tax credit allowed to be set off under section 115JD from the assessed tax.
This amendment will take effect from 1st April, 2013 and will, accordingly, apply in relation to assessment year 2013-2014 and subsequent assessment years.
