Wealth Tax - No interest on tax paid before due date

By Vijay Kumar

INTEREST under section 17B of the Wealth-tax Act is charged in case of default in furnishing of return of net wealth by an assessee. The interest is charged at the specified rate on the amount of tax payable on the net wealth. Since the provisions of section 17B do not provide for reduction of the amount of self-assessment tax from the amount on which interest under section 17B is chargeable, interest is being charged on the amount of self- assessment tax paid by the assessee even before the due date of filing of return of net wealth.

CBDT clarifies that no interest under section 17B of the Wealth-tax Act is chargeable on the amount of self-assessment tax paid by the assessee before the due date of filing return of net wealth.

CBDT Circular No. 05/2015, Dated: April 9, 2015