Section 115WK is the FBT counterpart of s.234A. Where the FBT return is filed late or not at all, interest runs at 1% per month from the day after the due date to the date of furnishing (or, if no return, to completion of the best-judgment assessment under s.115WF), on the FBT determined under s.115WE(1) or on regular assessment, less advance tax paid under s.115WJ. Explanation 1 defines 'due date' (by reference to s.115WD(1)); Explanation 2 treats a first-time s.115WG assessment as a 'regular assessment'. Sub-section (2) expressly applies s.234A(2)-(4).
Historical context / FA amendment trail
Inserted by the Finance Act, 2005 w.e.f. AY 2006-07. Inapplicable from AY 2010-11 (s.115WM).
Operative consequences
• Interest at 1% per month for late or non-filing of the FBT return.
• Computed on FBT determined less advance tax paid under s.115WJ.
• Mandatory and compensatory; not in the AO's discretion (Ghaswala).
Compiled for the bharattax.co Treatise on the Income-tax Act, 1961 (as amended by the Finance Act, 2026). Block 1 reproduces the statutory text verbatim from the Income-tax Act, 1961 (text as printed; the Chapter remains on the statute book but is inapplicable from AY 2010-11 by s.115WM). The Finance Act, 2026 makes no substantive change to Chapter XII-H. Not legal advice.
Case Laws & Commentary
Section 115WK — Interest for Default in Furnishing Return of Fringe Benefits
Case Laws & Commentary · Income-tax Act, 1961 (as amended by the Finance Act, 2026) · bharattax.co Treatise
Chapter: XII-H — Income-tax on Fringe Benefits (Fringe Benefit Tax). Inserted by the Finance Act, 2005 with effect from assessment year 2006-07.
Operative life: FBT was levied for assessment years 2006-07 to 2009-10. By section 115WM (inserted by the Finance (No. 2) Act, 2009), the Chapter does not apply from assessment year 2010-11 onwards. The sections were NOT omitted — they remain on the statute book but are switched off prospectively.
Finance Act, 2026: Makes no substantive amendment to Chapter XII-H. (The Finance Act, 2026 carries only consequential cross-references to sections 115WD/115WH in a penalty provision; the FBT charge, scope and machinery are untouched.)
Part: C — Procedure for filing of return, assessment and payment.
Parallel: FBT analogue of section 234A (interest for default in furnishing return); sub-section (2) expressly imports section 234A(2)-(4).
A. SECTION COMMENTARY
Section 115WK imposes interest at 1% per month where the FBT return under section 115WD is filed late or not filed at all — computed from the day after the due date to the date of furnishing the return (or, where no return is filed, to the date of completion of the best-judgment assessment under 115WF) on the FBT determined under 115WE(1) or on regular assessment, as reduced by advance tax paid under 115WJ. It is the FBT counterpart of section 234A. Explanation 1 defines 'due date' by reference to 115WD(1); Explanation 2 deems a first-time assessment under 115WG to be a 'regular assessment' for this section. Sub-section (2) expressly applies sub-sections (2) to (4) of section 234A.
Being modelled on (and expressly importing) section 234A, the interest under section 115WK is mandatory and compensatory — the levy is automatic on default and not in the Assessing Officer's discretion (Ghaswala). There is no FBT-specific reported merits decision on section 115WK.
B. STATUTORY POSITION (verbatim text)
Section 115WK, Income-tax Act, 1961:
115WK. (1) Where the return of fringe benefits for any assessment year under sub-section (1) or sub-section (3) of section 115WD or in response to a notice under sub-section (2) of that section, is furnished after the due date, or is not furnished, the employer shall be liable to pay simple interest at the rate of one per cent for every month or part of a month comprised in the period commencing on the date immediately following the due date, and,— (a) where the return is furnished after the due date, ending on the date of furnishing of the return; or (b) where no return has been furnished, ending on the date of completion of the assessment under section 115WF, on the amount of the tax on the value of fringe benefits as determined under sub-section (1) of section 115WE or regular assessment as reduced by the advance tax paid under section 115WJ.
Explanation 1.—In this section, "due date" means the date specified in the Explanation to sub-section (1) of section 115WD as applicable in the case of the employer. Explanation 2.—Where, in relation to an assessment year, an assessment is made for the first time under section 115WG, the assessment so made shall be regarded as a regular assessment for the purposes of this section.
(2) The provisions contained in sub-sections (2) to (4) of section 234A shall, so far as may be, apply to this section.
C. AUTHORITIES
Candour note: no FBT-specific reported decision construes section 115WK. It is the FBT analogue of section 234A and expressly imports section 234A(2)-(4); the mandatory, compensatory character of such interest is settled by the Constitution Bench in Ghaswala.
C-1 Mandatory interest for return default (cognate)
Proposition: Interest under the mandatory machinery provisions of the Act (e.g. sections 234A-234C) is compensatory and mandatory; the levy is automatic and not in the discretion of the authority. Applied to FBT, the interest charges in sections 115WJ and 115WK (and 234A as imported by 115WK(2)) are mandatory in the same way.
Why relevant: Section 115WL applies 'all other provisions of this Act' to fringe benefits; the FBT interest provisions mirror the income-tax interest code, so the Ghaswala principle governs them.
Compiled for the bharattax.co Treatise on the Income-tax Act, 1961 (as amended by the Finance Act, 2026). Statutory text reproduced verbatim from the Income-tax Act, 1961 (text as printed in the Act, the Chapter remaining on the statute book but rendered inapplicable from assessment year 2010-11 onwards by section 115WM). Citations are stated as reported; rulings of the Authority for Advance Rulings and orders of the Tribunal are flagged as such. Where a section has not been judicially construed, that is stated candidly and the nearest governing authority (including the machinery provisions imported by section 115WL) is given. This material is for professional reference and is not legal advice.
Function in the statutory architecture
Section 115WK is the FBT counterpart of s.234A. Where the FBT return is filed late or not at all, interest runs at 1% per month from the day after the due date to the date of furnishing (or, if no return, to completion of the best-judgment assessment under s.115WF), on the FBT determined under s.115WE(1) or on regular assessment, less advance tax paid under s.115WJ. Explanation 1 defines 'due date' (by reference to s.115WD(1)); Explanation 2 treats a first-time s.115WG assessment as a 'regular assessment'. Sub-section (2) expressly applies s.234A(2)-(4).
Historical context / FA amendment trail
Inserted by the Finance Act, 2005 w.e.f. AY 2006-07. Inapplicable from AY 2010-11 (s.115WM).
Operative consequences
• Interest at 1% per month for late or non-filing of the FBT return.
• Computed on FBT determined less advance tax paid under s.115WJ.
• Mandatory and compensatory; not in the AO's discretion (Ghaswala).
• Expressly imports the s.234A(2)-(4) machinery.
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Compiled for the bharattax.co Treatise on the Income-tax Act, 1961 (as amended by the Finance Act, 2026). Block 1 reproduces the statutory text verbatim from the Income-tax Act, 1961 (text as printed; the Chapter remains on the statute book but is inapplicable from AY 2010-11 by s.115WM). The Finance Act, 2026 makes no substantive change to Chapter XII-H. Not legal advice.
Case Laws & Commentary
Section 115WK — Interest for Default in Furnishing Return of Fringe Benefits
Case Laws & Commentary · Income-tax Act, 1961 (as amended by the Finance Act, 2026) · bharattax.co Treatise
Chapter: XII-H — Income-tax on Fringe Benefits (Fringe Benefit Tax). Inserted by the Finance Act, 2005 with effect from assessment year 2006-07.
Operative life: FBT was levied for assessment years 2006-07 to 2009-10. By section 115WM (inserted by the Finance (No. 2) Act, 2009), the Chapter does not apply from assessment year 2010-11 onwards. The sections were NOT omitted — they remain on the statute book but are switched off prospectively.
Finance Act, 2026: Makes no substantive amendment to Chapter XII-H. (The Finance Act, 2026 carries only consequential cross-references to sections 115WD/115WH in a penalty provision; the FBT charge, scope and machinery are untouched.)
Part: C — Procedure for filing of return, assessment and payment.
Parallel: FBT analogue of section 234A (interest for default in furnishing return); sub-section (2) expressly imports section 234A(2)-(4).
A. SECTION COMMENTARY
Section 115WK imposes interest at 1% per month where the FBT return under section 115WD is filed late or not filed at all — computed from the day after the due date to the date of furnishing the return (or, where no return is filed, to the date of completion of the best-judgment assessment under 115WF) on the FBT determined under 115WE(1) or on regular assessment, as reduced by advance tax paid under 115WJ. It is the FBT counterpart of section 234A. Explanation 1 defines 'due date' by reference to 115WD(1); Explanation 2 deems a first-time assessment under 115WG to be a 'regular assessment' for this section. Sub-section (2) expressly applies sub-sections (2) to (4) of section 234A.
Being modelled on (and expressly importing) section 234A, the interest under section 115WK is mandatory and compensatory — the levy is automatic on default and not in the Assessing Officer's discretion (Ghaswala). There is no FBT-specific reported merits decision on section 115WK.
B. STATUTORY POSITION (verbatim text)
Section 115WK, Income-tax Act, 1961:
115WK. (1) Where the return of fringe benefits for any assessment year under sub-section (1) or sub-section (3) of section 115WD or in response to a notice under sub-section (2) of that section, is furnished after the due date, or is not furnished, the employer shall be liable to pay simple interest at the rate of one per cent for every month or part of a month comprised in the period commencing on the date immediately following the due date, and,— (a) where the return is furnished after the due date, ending on the date of furnishing of the return; or (b) where no return has been furnished, ending on the date of completion of the assessment under section 115WF, on the amount of the tax on the value of fringe benefits as determined under sub-section (1) of section 115WE or regular assessment as reduced by the advance tax paid under section 115WJ.
Explanation 1.—In this section, "due date" means the date specified in the Explanation to sub-section (1) of section 115WD as applicable in the case of the employer. Explanation 2.—Where, in relation to an assessment year, an assessment is made for the first time under section 115WG, the assessment so made shall be regarded as a regular assessment for the purposes of this section.
(2) The provisions contained in sub-sections (2) to (4) of section 234A shall, so far as may be, apply to this section.
C. AUTHORITIES
Candour note: no FBT-specific reported decision construes section 115WK. It is the FBT analogue of section 234A and expressly imports section 234A(2)-(4); the mandatory, compensatory character of such interest is settled by the Constitution Bench in Ghaswala.
C-1 Mandatory interest for return default (cognate)
CIT v. Anjum M.H. Ghaswala (2001) 252 ITR 1 (SC) [Constitution Bench]
Proposition: Interest under the mandatory machinery provisions of the Act (e.g. sections 234A-234C) is compensatory and mandatory; the levy is automatic and not in the discretion of the authority. Applied to FBT, the interest charges in sections 115WJ and 115WK (and 234A as imported by 115WK(2)) are mandatory in the same way.
Why relevant: Section 115WL applies 'all other provisions of this Act' to fringe benefits; the FBT interest provisions mirror the income-tax interest code, so the Ghaswala principle governs them.
Compiled for the bharattax.co Treatise on the Income-tax Act, 1961 (as amended by the Finance Act, 2026). Statutory text reproduced verbatim from the Income-tax Act, 1961 (text as printed in the Act, the Chapter remaining on the statute book but rendered inapplicable from assessment year 2010-11 onwards by section 115WM). Citations are stated as reported; rulings of the Authority for Advance Rulings and orders of the Tribunal are flagged as such. Where a section has not been judicially construed, that is stated candidly and the nearest governing authority (including the machinery provisions imported by section 115WL) is given. This material is for professional reference and is not legal advice.