Income Tax Act, 2025
Section 7: Ins. by Act 23 of 2012, s. 87 (w.e.f. 12013).
7. Ins. by Act 23 of 2012, s. 87 (w.e.f. 12013).
697
1[234D. Interest on excess refund.—(1) Subject to the other provisions of this Act, where any refund
is granted to the assessee under sub-section (1) of section 143, and—
(a) no refund is due on regular assessment; or
(b) the amount refunded under sub-section (1) of section 143 exceeds the amount refundable on
regular assessment,
the assessee shall be liable to pay simple interest at the rate of 2[one-half per cent.] on the whole or the
excess amount so refunded, for every month or part of a month comprised in the period from the date of
grant of refund to the date of such regular assessment.
(2) Where, as a result of an order under section 154 or section 155 or section 250 or section
254 or section 260 or section 262 or section 263 or section 264 or an order of the Settlement Commission
under sub-section (4) of section 245D, the amount of refund granted under sub-section (1) of section
143 is held to be correctly allowed, either in whole or in part, as the case may be, then, the interest
chargeable, if any, under sub-section (1) shall be reduced accordingly.
3[Explanation 1].—Where, in relation to an assessment year, an assessment is made for the first time
under section 147 or section 153A, the assessment so made shall be regarded as a regular assessment for
the purposes of this section.]
4[Explanation 2.—For the removal of doubts, it is hereby declared that the provisions of this section
shall also apply to an assessment year commencing before the 1st day of June, 2003 if the proceedings in
respect of such assessment year is completed after the said date.]
5[G.—Levy of fee in certain cases
234E. Fee for default in furnishing statements.—(1) Without prejudice to the provisions of the Act,
where a person fails to deliver or cause to be delivered a statement within the time prescribed in
sub-section (3) of section 200 or the proviso to sub-section (3) of section 206C, he shall be liable to pay,
by way of fee, a sum of two hundred rupees for every day during which the failure continues.
(2) The amount of fee referred to in sub-section (1) shall not exceed the amount of tax deductible or
collectible, as the case may be.
(3) The amount of fee referred to in sub-section (1) shall be paid before delivering or causing to be
delivered a statement in accordance with sub-section (3) of section 200 or the proviso to sub-section (3)
of section 206C.
(4) The provisions of this section shall apply to a statement referred to in sub-section (3) of
section 200 or the proviso to sub-section (3) of section 206C which is to be delivered or caused to be
delivered for tax deducted at source or tax collected at source, as the case may be, on or after the 1st day
of July, 2012.]
Subject to the other provisions of this Act, where any refund
is granted to the assessee under sub-section
of section 143, and—
no refund is due on regular assessment; or
the amount refunded under sub-section
of section 143 exceeds the amount refundable on
regular assessment,
the assessee shall be liable to pay simple interest at the rate of 2[one-half per cent.] on the whole or the
excess amount so refunded, for every month or part of a month comprised in the period from the date of
grant of refund to the date of such regular assessment.
Where, as a result of an order under section 154 or section 155 or section 250 or section
254 or section 260 or section 262 or section 263 or section 264 or an order of the Settlement Commission
under sub-section
of section 245D, the amount of refund granted under sub-section
of section
143 is held to be correctly allowed, either in whole or in part, as the case may be, then, the interest
chargeable, if any, under sub-section
shall be reduced accordingly.
3[Explanation 1].—Where, in relation to an assessment year, an assessment is made for the first time
under section 147 or section 153A, the assessment so made shall be regarded as a regular assessment for
the purposes of this section.]
4[Explanation 2.—For the removal of doubts, it is hereby declared that the provisions of this section
shall also apply to an assessment year commencing before the 1st day of June, 2003 if the proceedings in
respect of such assessment year is completed after the said date.]
5[G.—Levy of fee in certain cases
234E. Fee for default in furnishing statements.—
Without prejudice to the provisions of the Act,
where a person fails to deliver or cause to be delivered a statement within the time prescribed in
sub-section
of section 200 or the proviso to sub-section
of section 206C, he shall be liable to pay,
by way of fee, a sum of two hundred rupees for every day during which the failure continues.
The amount of fee referred to in sub-section
shall not exceed the amount of tax deductible or
collectible, as the case may be.
The amount of fee referred to in sub-section
shall be paid before delivering or causing to be
delivered a statement in accordance with sub-section
of section 200 or the proviso to sub-section
of section 206C.
The provisions of this section shall apply to a statement referred to in sub-section
of
section 200 or the proviso to sub-section
of section 206C which is to be delivered or caused to be
delivered for tax deducted at source or tax collected at source, as the case may be, on or after the 1st day
of July, 2012.]