Under which sec of IT Act interest on outstanding tax Rs 3807/- as on 31/3/2008, deposited on 30/6/08 is shown

Question

My friend had tax outstanding of Rs 3807/- as on 31/3/2008. He deposited his outstanding tax along with interest @1.25% compounding monthly (Rs 145/-) on 30th june 2008. My question is how this interest of Rs 145/- be shown in income tax return ie. under which setion IT Act whether u/s 234A, 234B or 234C.

Answer 1

There is no interest outstanding unless the tax due is more than Rs. 5000. Show as self assessment tax and then you will have a refund.

Read: Read about interest charged under sections 234A, 234B and 234C for income tax and sections 201(1A) and 206C(7) for TDS; http://mytaxes.in/index.php?topic=77.0

In this article read section 208. Conditions of liability to pay advance tax.