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3. The heading of Chapter XVII-F is 'Interest Chargeable in Certain Cases.' It comprises of Sections 234A, 234B and 234C. The said provisions were inserted by Direct Tax Laws (Amendment) Act, 1987 with effect form 01.04.1989.

234ASection of the Act reads thus:-

"234A. Interest for defaults in furnishing return of income (1) Where the return of income for any assessment year under Sub-section (1) or Sub-section (4) of Section 139, or in response to a notice under Sub-section (1) of Section 142, is furnished after the due date, or is not furnished, the assessed shall be liable to pay simple interest at the rate of [one and one-half per cent.] [w.e.f. 1-6-2001 one and one-fourth per cent.] for every month or part of a month comprised in the period commencing on the date immediately following the due date, and,-

(3) Where the return of income for any assessment year, required by a notice under Section 148 issued [after the determination of income under Sub-section (1) of Section 143 or] after the completion of an assessment under Sub- Section (3) of Section 143 or Section 144 or Section 147, is furnished after the expiry of the time allowed under such notice, or is not furnished, the assessed shall be liable to pay simple interest at the rate of [one and one-half per cent] w.e.f. 1-6-2001' one and one-fourth per cent.] for every month or part of a month comprised in the period commencing on the day immediately following the expiry of the time allowed as aforesaid, and,-

4. Thus by reason thereof, a provision for payment of simple interest calculated @ 24% per annum has been made, which becomes payable by assessed, who commits default in furnishing a return of income. When tax is not paid along with filing of the return, inter alia such interest is payable by the assessed or who, even though liable to pay advance-tax under Section 208 of the Act, has either failed to pay such tax or advance-tax paid under Section 210 is less than 90% of the tax assessed. Section 234C of the Act regulates the payment of interest @ 18% per annum in the case of an assessed, who is liable to pay advance-tax under Section 208 of the Act, but either fails to pay such tax or pays the same so as to be less than 30% by the 15th of September, or 60% by the 15th December of the tax due on the returned income.

(i). Sub-section (1) provides that where a return of income is furnished after due date or is not furnished, the assessed shall pay simple interest @ 2% for every month or part of a month comprised in the period of default on the amount of tax on total income determined on regular assessment (as reduced by any advance tax paid or tax deducted at source.

It has been clarified that,-

i. the due date for filing of a return of income is the date specified in Section 139(1), as applicable in the case of the assessed;