interest u/s 234A under search

[rajeev kamal]

date of search 12.12.2009. for the financial yaer 2008-09 was not filed thogh Tax audit for the same was done till the date of search.Department issued a notice to file return u/s 153 A. Time limit to file return u/s 153A 10.10.2011. period for which interest u/s 234A will be calculated.

[Surender Gupta]

The computation of the interest under section 234A is to be done for every month or part of the month comprised in the period commencing on the day immediately following the expiry of the time allowed in the notice under section 153A. The interest under section 234B is to be computed on the amount by which the tax on the total income determined on the basis of the assessment under section 153A exceeds the tax on the total income determined under sub-section (1) of section 143 on the return filed in response to the notice issued under section 153A.

See:

2011 (2) TMI 45 - ITAT CHENNAI

AI Summary

Interest under section 234A accrues from day after expiry of time allowed in notice under section 153A. Computation of interest under section 234A begins from the day after expiry of the time allowed in the notice issued under section 153A and is charged for every month or part month within that period; interest under section 234B is computed on the amount by which the tax determined in the assessment following the 153A notice exceeds the tax shown in the return filed in response to that notice.