Section 234A, 234B & 234C

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CA Harish Singh

CA Harish Singh (Querist)
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14 December 2009 Can anyone tell me about sec 234A, 234B & 234C in brief with examples.

Murtaza I Bhagat

Murtaza I Bhagat (Expert)
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14 December 2009 Advance Payment of Income Tax For the assessment year 2009-2010.

Due dates of payment of advance Tax.
Particulars / Date Corporate Assessee Non-Corporate Assessee

on or before 15 June Upto 15% of advance tax payable NIL
on or before 15 September Upto 45% of advance tax payable Upto 30% of advance tax payable
on or before 15 December Upto 75% of advance tax payable Upto 60% of advance tax payable
on or before 15 March Upto 100% of advance tax payable Upto 100% of advance tax payable
Interest payable by the assessee.

Section 234A: For defults in furnishing return of Income.
If the return of income is furnished after the due date, the assessee is liable to
Pay simple interest @ 1% per month or part of month.
Section 234B: For defults in payment of advance tax.
An assessee who is liable to pay advance tax , has to failed to pay such tax than
simple interest @ 1% is Payable on assessed tax from the date on which advance
tax become due.
As assessee who is paid advance tax but the amout of advance tax paid by him is
less than 90% of assessed tax, than Simple interest @ 1% is payable on Assessed
tax minus advance tax.
Section 234C: For deferment of advance tax
Interest is payable on the under this section if the assessee has not paid the
advance tax or underestimated instalments of advance tax.Interest is computed
on the following basis.
In case of Non-corporate assessee
When Interest payable Rate of Interest Period of Interest Amount on which interest is payable
On or before 15 Sep less than 30% (a-b) Simple Interest @ 1% 3 Months 30%(a-b)-c
On or before 15 Dec less than 60% (a-b) Simple Interest @ 1% 3 Months 60%(a-b)-d
On or before 15 Mar less than 100% (a-b) Simple Interest @ 1% - 100%(a-b)-e

In case of corporate assessee
When Interest payable Rate of Interest Period of Interest Amount on which interest is payable
On or before 15 June less than 12% (a-b) Simple Interest @ 1% 3 Months 15%(a-b)-c
On or before 15 Sep less than 36% (a-b) Simple Interest @ 1% 3 Months 45%(a-b)-d
On or before 15 Dec less than 75% (a-b) Simple Interest @ 1% 3 Months 75%(a-b)-e
On or before 15 Mar less than 100% (a-b) Simple Interest @ 1% - 100%(a-b)-f
Note:-
a) Tax on total income declared in the return filed by the assessee.
b) TDS or TCS.
c) Amount of advance tax on or before Jun15 of the FY.Immediately preceding the relevants AY.
d) Amount of advance tax on or before Sep15 of the FY.Immediately preceding the relevants AY.
e) Amount of advance tax on or before Dec 15 of the FY.Immediately preceding the relevants AY.
f) Amount of advance tax on or before Mar of the FY.Immediately preceding the relevants AY.

MAJOR DIFFERENCE B/W 234B AND 234C IS THAT U/S 234B, PENALTY IS FOR PAYING ADVANCE TAX LESS THAN 90% OF THE TOTAL ADVANCE TAX PAYABLE IN THE RELEVENT PREVIOUS YR., WHERE AS U/S 234C, PENALY IS NOT PAYING THE RELEVANT %AGE OF TAX ON THE RELVANT DUE DATES DURING THE RELEVANT PREVIOUSYRS.........

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