Amendment of section 234C.
74. In section 234C of the Income-tax Act, in sub-section (1),-
(i) in clause (a), for the words, figures and letters “an eligible assessee in respect of the eligible business referred to in section 44AD”, the words, brackets and letter “the assessee referred to in clause (b)” shall be substituted;
(ii) in clause (b), for the words, figures and letters “an eligible assessee in respect of the eligible business referred to in section 44AD”, the words, brackets, figures and letters “an assessee who declares profits and gains in accordance with the provisions of sub-section (1) of section 44AD or sub-section (1) of section 44ADA, as the case may be” shall be substituted;
(iii) in the first proviso,-
(A) in clause (c), for the words “first time,” occurring at the end, the words “first time; or” shall be substituted;
(B) after clause (c) and before the long line, the following clause shall be inserted, namely:-
“(d) income of the nature referred to in sub-section (1) of section 115BBDA,”;
(C) in the long line, after the words, brackets and letter “or clause (c)”, the words, brackets and letter “or clause (d)” shall be inserted.
Notes on Clauses:
Clause 74 of the Bill seeks to amend section 234C of the Income-tax Act relating to interest for deferment of advance tax.
It is proposed to provide that in respect of an assessee referred to in section 44ADA, interest under the aforesaid section shall be levied, if the advance tax paid on or before the 15th day of March, is less than the tax due on the returned income. The said amendment is consequential to the amendment of section 211.
Tax on certain dividends received from domestic companies is being levied under section 115BBDA with effect from the 1st April, 2017, if such income exceeds ten lakh rupees. The first proviso to sub-section (1) of section 234C lays down exceptions to the applicability of the said subsection to short fall in the payment of advance tax in case of certain incomes. It is proposed to amend the aforesaid proviso so as to provide that no interest under said section shall be levied on the income referred to in sub-section (1) of section 115BBDA subject to the conditions specified therein.
These amendments will take effect from 1st April, 2017 and will, accordingly, apply in relation to the assessment year 2017-2018 and subsequent years.
