CMA Intermediate · Direct and Indirect Taxation · Advance Tax
In computing the 'assessed tax' for interest under section 424, which of the following is reduced from the tax on the total income?
Tax deducted or collected at source on income included in the total income is reduced to arrive at assessed tax, under section 424(2)(a). The other items, such as interest or later tax payments, are not deductions in determining assessed tax.
- ATax deducted at source on income included in the total incomeCorrect
- BAdditional income-tax payable under section 267
- CInterest payable under section 424 itself
- DSelf-assessment tax paid after the due date
Explanation
Section 424(2)(a) reduces the tax on total income by TDS or TCS on income taken into account in the total income. Additional income-tax under section 267 is excluded from the tax on total income under 424(3), not reduced as a credit. Interest and self-assessment tax are not listed deductions.
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