Amendment of section 234C.
84. In section 234C of the Income-tax Act, in sub-section (1), in the Explanation, 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 84 of the Bill seeks to amend section 234C of the Income-tax Act relating to interest for deferment of advance tax.
The existing provisions of sub-section (1) of the aforesaid section 234C provides that the assesse is liable to pay simple interest at the rate of one per cent. per month on the amount of shortfall from the specified percentages of the tax due on the returned income. The Explanation to the said section defines the “tax due on the returned income” to mean the tax chargeable on the total income declared in the return of income furnished by the assessee for the assessment year commencing on 1st April immediately following the financial year in which the advance tax is paid or payable, as reduced by the amount of any tax deductible or collectible 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 the Explanation to sub-section (1) of the aforesaid section so as to provide for reduction of tax credit allowed to beset-off under section 115JD from the tax due on the returned 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.
