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What is Sec 234 A , 234B & 234C


Hi!

i want to know about Sec 234 A , 234B & 234 C of the Income Tax Act.

 

can u give the example?

thanks

 

 

 

 
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Chartered Accountant - Manager Finance

These sections are for the interest and penalty on late filing of return, default in payment of advance tax and deferrment of payment in advance tax respectively.

Charged at 1%per month of the delays\defaults.

There is a good calculator of this interest in the Shared Files.

You can check that section

 
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(Guest)

Hi!
i want to know about Sec 234 A , 234B & 234 C of the Income Tax Act.
 
can u give the example?
thanks
 

 
Reply   
 

Originally posted by :MOHIT
" Hi!
i want to know about Sec 234 A , 234B & 234 C of the Income Tax Act.
 
can u give the example?
thanks
 
 
 
"


 

 
Reply   
 

234A: Interest on late filing of Return of Income

234B: Intt on default of Non payment/ short payment of Advance Tax

234C: Interest on the amount of advnce tax , the payment whereof has been deferred

For Calculations refer the sections and the shared files


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Section 234 A : Interest payable for default in furnishing the return of income

Where the return of income for any assessment year is furnished after the due date or is not furnished, the assessee shall be liable to pay simple interest at the rate of one per cent for every month or part of a month for the period commencing on the date immediately following the due date upto the date of furnishing the return (in cases where return is furnished after the due date) or upto the end of the Assessment Year (in cases where no return is furnished) on the amount of shortfall in total income tax payable by the assessee.

In simple words, interest @ 1% per month is payable on the amount of income tax paid after the due date for filing of the return.

 

Section 234 B : Interest payable for default in payment of advance tax

An assessee who is liable to pay advance tax has failed to pay such tax or where the advance tax paid by such assessee is less than ninety per cent of the assessed tax, the assessee shall be liable to pay simple interest at the rate of one per cent for every month or part of a month for period from the date on which the payment of advance tax became due on the amount of shortfall in the amount of advance tax paid.

In simple words, interest @ 1% per month is payable on the amount of income tax paid after the end of the financial year.

 

Section 234 C : Interest payable for deferment of advance tax

Interest is payable @ 1% for 3 months on the amount of shortfall in payment of advance tax became due on 15th June (applicable only to Corporate assessees), 15th September (all assesses) and 15th December (all assessees) and interest @ 1% on the amount of shortfall in payment of advance tax became due on 15th March (all assessees).


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