Amendment of section 234A.
82. In section 234A of the Income-tax Act, in sub-section (1), in clause (vi), 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 82 of the Bill seeks to amend section 234A of the Income-tax Act relating to interest for defaults in furnishing return of income.
The existing provisions of sub-section (1) of the aforesaid section 234A provides that the assessee is liable to pay simple interest at the rate of one per cent. for every month or part of a month on the amount of the tax on the total income as reduced by the advance tax, if any, paid; any tax deducted or collected at source; any relief of tax allowed under section 90 on account of tax paid in a country outside India; any relief of tax allowed under section 90A on account of tax paid in a specified territory outside India referred to in that section; any deduction, from the Indian income-tax payable, allowed under section 91; and any 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 (vi) of 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 tax on total income.
This amendment will take effect from 1st April, 2013 and will, accordingly, apply in relation to assessment year 2013-2014 and subsequent assessment years.
