Suppose you were supposed to file your return on 31.7.2011. And further suppose that since you want to know about interest calculations U/s 234-A, 234-B and 234-C you have not paid any advance tax or income tax. Fortunately Bank has deducted TDS of3000 on FDR Interest. . Your Tax payable is 18000/- and if you deduct TDS from this - 15000/- remains payable.
. For delay in filing of return even for part of the month Interest U/s 234-A 15000*1month* @1%=150 . Tax payable 15000>10000 , You were liable to pay advance tax also. . 234B and 234C comes into action. . 234B becomes applicable from 1.4.2011 to 10.08.2011- As tomorrow or upto 31.08.2011 you will pay tax. . Int U/s 234B =15000*5month* @1%=750 . Till here we have calculated Interest U/s 234A and 234B. Period covered is after the end of the Previous Year. . Advance Tax is the tax , which is payable during the Previous year when Your tax liability exceeds 10000/-. . Interest U/s 234C: Installments of15000: 1.15-09-2010 30% amount must be paid (4500) . 2.15-12-2010 60% Total amt to be paid(9000) . 3 15-03-2010 100% Whole amt to be paid(15000) . A. Since you have not paid Ist Installment Interest @ 3% will be leviable on 4500. (Interest upto 15-12-2011) 4500*3% = 135 (You may reduce from 4500 if you have paid lesser, If you have paid 5000 here do not calculate Interest)
. B. Since you have not paid IInd Installment Interest @ 3% will be leviable on 9000. (This is deemed upto 15-03-2011) 9000*3% = 270 (You may reduce from 9000 if you have paid any amt. If you have paid 5000 here or in earlier quarter calculate Interest on4000 only) . C. Since you have not paid IIIRD or the last Installment Interest @ 1% will be leviable on 15000. (This is deemed from 15-03-2011 to 31-3-2011) 15000*1% = 150 (You may reduce from 15000 if you have paid any amt. If you have paid 5000 here and 5000 earlier calculate Interest on the balance5000 only) . Calculate Interest U/s 234C 135+270+150=555 . You may find other examples in share files also. But the above may be helpful.