Section 234D of Income Tax Act "Interest on excess refund"
234D. (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 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.
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.
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.
234E. (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.