Amendment of section 234B.
65. In section 234B of the Income-tax Act, in sub-section (1), for Explanation 3, the following Explanation shall be substituted, namely:––
‘Explanation 3.––In Explanation 1 and in sub-section (3),––
(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 such regular assessment shall not include the additional income-tax payable under section 140B.’.
Notes on Clauses:
Clause 65 seeks to amend section 234B of the Income-tax Act relating to interest for defaults in payment of advance tax.
It is proposed to amend Explanation 3 to sub-section (1) of the said 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.
This amendment will take effect from 1st April, 2022.
