Query reg. 234b & 234c

Yogesh Shah (Managing Corporate Finance)   (1051 Points)

23 June 2012  

Hi Guys ..

 

While finalizing one individual's ITR, I noticed that he didn't file his ITR for AY 2011-12 i.e. last year. After income computation, tax liability comes around Rs. 13,500/- including cess but excluding interest. Interest u/s. 234A, I have levied but im confused in 234B & 234C.

 

Now my question is whether Interest u/s. 234B is leviable?

since this section starts with the words 'If assessee HAS PAID Advance Tax but the amount is less than 90%'.

In my case, assessee didn't pay advance tax in last year.

 

Hence whether ONLY 234C interest is chargeable 

OR BOTH i.e. 234B as well as 234C interest.

 

When I searched the same on net, I found some answers telling that both are chargeable but I don't think so. Plz suggest.