Amendment of section 234A.
64. In section 234A of the Income-tax Act, in sub-section (1),––
(i) after the words, brackets and figure “or sub-section (4)”, the words, brackets, figure and letter “or sub-section (8A)” shall be inserted;
(ii) for Explanation 2, the following Explanation shall be substituted, namely:–
‘Explanation 2.––In this sub-section,––
(i) “tax on total income as determined under subsection (1) of section 143” shall not include the additional income-tax, if any, payable under section 140B or section 143; and
(ii) tax on the total income determined under regular assessment shall not include the additional income-tax payable under section 140B.’.
Notes on Clauses:
Clause 64 seeks to amend section 234A of the Income-tax Act relating to interest for defaults in furnishing return of income.
It is proposed to amend sub-section (1) of the said section to provide that an assessee shall be liable to pay simple interest for furnishing after due date or not furnishing a return under sub-section (8A) in addition to return under sub-section (1) or sub-section (4) of section 139.
It is further proposed to amend Explanation 2 of the sub-section to provide that,––
(i) “tax on total income as determined under sub-section (1) of section 143” shall not include the additional income-tax, if any, payable under section 140B or section 143 and
(ii) “tax on total income determined under such regular assessment” shall not include the additional income-tax payable under section 140B.
These amendments will take effect from 1st April, 2022.
