Overview of Section 234B Section 234B deals with interest for default in payment of advance tax. It applies when a company fails to pay at least 90 percent of its assessed tax by March 31. Interest is levied at the rate of 1 percent per month or part of a month. The...
Interest Under Section 234A (Delay in Filing Return) Applies when the return is filed after the due date and tax is unpaid. Interest is charged at 1 percent per month or part of a month. Calculated on the unpaid tax amount from the due date till the date of actual...
Time Limit for Regular Assessment (Section 143(3)) The assessment must be completed within 9 months from the end of the relevant assessment year. For assessment year 2023–24, the time limit is December 31, 2024. This applies to scrutiny assessments initiated under...
Understanding a Scrutiny Notice A scrutiny notice is issued under section 143(2) of the Income-tax Act, 1961. It indicates that the company’s return has been selected for detailed examination. The notice may be issued due to discrepancies, high-value transactions, or...
Definition of Demand Notice A demand notice is an official communication from the Income Tax Department. It is issued when a tax liability is determined to be outstanding or underpaid. The notice formally requests the company to pay the specified tax amount. It is...
Interest and Late Payment Charges Interest under section 234A is levied for delay in filing the return when tax is unpaid. Section 234B charges interest for failure to pay advance tax. Section 234C applies interest for deferment or shortfall in advance tax...
Refund Eligibility Criteria A corporate tax refund arises when excess tax is paid over the actual liability. Refunds may result from advance tax, TDS, or self-assessment tax overpayments. The refund amount is claimed in the income tax return. Proper bank account...
Income Tax Return Filing Companies must file their annual income tax return using Form ITR-6. Filing must be completed by October 31st of the assessment year. Companies engaged in international transactions must file by November 30th. Filing must be done...
Eligibility for Start-up Recognition Start-ups must be recognized by the Department for Promotion of Industry and Internal Trade. The company must be incorporated as a private limited company or LLP. The turnover should not exceed ₹100 crore in any financial year...
Eligibility for Carry Forward Yes, capital losses can be carried forward under corporate tax provisions. This includes both short-term and long-term capital losses. Losses must be declared in the income tax return filed within the due date. The company must maintain...