Assessing Officer has not any right to charge interest u/s. 234B on non deduction of TDS u/s. 194C, 194A, 194H, 194I, 194J and 195.
The dis-allowance on account of non deduction of tax at source is now very common form of dis-allowance by the assessing officer. Such dis-allowance is done u/s 40(a)(i) and 40(a)(ia) of the Income Tax Act. Very common dis-allowances for non deductions of tax at source are as under :
The dis-allowance on account of non deduction of tax at source is now very common form of dis-allowance by the assessing officer. Such dis-allowance is done u/s 40(a)(i) and 40(a)(ia) of the Income Tax Act. Very common dis-allowances for non deductions of tax at source are as under :
- Non deduction on contractual works (Section 194C )
- Non deduction of tax on interest (194A)
- Non deduction of tax on commission (194H)
- Non deduction of tax on rent (194 I)
- Non deduction of tax on professional and technical fee (194J)
- Non deduction of tax on payments to Non Residents.(195)
The Assessing Officer (A.O.) computes on increased total income and charges interest u/s 234B. Thus, interest u/s 234B is charged also on the tax on dis-allowance u/s 40(a)(i) which is included in total income.
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