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ITA 1961 → ITA 2025Interest

Section 234A Section 270

Interest for defaults in furnishing return of income

RetainedHigh - Punitive cost for missing the ITR deadline.

Quick Answer

Section 234A of the Income Tax Act, 1961 (Interest for defaults in furnishing return of income) corresponds to Section 270 of the Income-tax Act, 2025, effective 1st April 2026. Status: Retained.

What changed for Section 234A

Section 234A of the 1961 Act sets out the rules on interest for defaults in furnishing return of income. Interest @ 1% per month for late filing of ITR.

The new code maps this to Section 270: the provision is retained and renumbered as Section 270 of the Income-tax Act, 2025, applying from 1st April 2026. Retained. Calculated from the day following the due date until the actual date of filing.

On the ground, changes to Section 234A carry a High impact. Punitive cost for missing the ITR deadline.

Old Law (ITA 1961)Ch: XVIII

Sec 234A

Provision Summary

Interest @ 1% per month for late filing of ITR.

New Law (ITA 2025)Ch: XX

Sec 270

Provision Summary

Retained. Calculated from the day following the due date until the actual date of filing.

Key Changes & Highlights

  • Automatic calculation by the portal; return cannot be filed without paying this interest under self-assessment.

Related Sections

Frequently Asked Questions

What does Section 234A of the Income Tax Act 1961 deal with?

Section 234A of the Income Tax Act, 1961 covers interest for defaults in furnishing return of income. Interest @ 1% per month for late filing of ITR.

Where does Section 234A of the ITA 1961 go under the Income-tax Act, 2025?

Section 234A of the Income Tax Act, 1961 maps to Section 270 of the Income-tax Act, 2025, effective 1st April 2026 (status: Retained). Retained. Calculated from the day following the due date until the actual date of filing.

Why does the change to Section 234A matter for taxpayers?

The transition impact for Section 234A is rated High. Punitive cost for missing the ITR deadline.

What are the key changes to Section 234A under the Income-tax Act, 2025?

Automatic calculation by the portal; return cannot be filed without paying this interest under self-assessment. These points are specific to Section 234A (Interest for defaults in furnishing return of income).

Disclaimer: This mapping of Section 234A (Interest for defaults in furnishing return of income) to Section 270 of the Income-tax Act, 2025 is for educational and reference purposes only, based on publicly available drafts and circulars. As Section 234A is currently marked Retained, always confirm its treatment with a qualified Chartered Accountant before filing or making compliance decisions.

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