234 b and 234 c calculation
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
22 May 2013
Dear Sir,
I have income u/s 44 AD and income from partnership firm. I have total tax liability of Rs.54666/-.How to calculate 234B and 234C Interest ie, on the basis of total tax liability or on the basis of income from partnership firm only?
I have income u/s 44 AD and income from partnership firm. I have total tax liability of Rs.54666/-.How to calculate 234B and 234C Interest ie, on the basis of total tax liability or on the basis of income from partnership firm only?
22 May 2013
234B
as your tax liability exceeds 10000 so advance tax payable,..
where 234 B applicable,
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.
caluculation:
in short
interest @ 1% per month is payable on the amount of income tax paid after the end of the financial year
as your tax liability exceeds 10000 so advance tax payable,..
where 234 B applicable,
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.
caluculation:
in short
interest @ 1% per month is payable on the amount of income tax paid after the end of the financial year
22 May 2013
234C,
interest for deferment of advancetax
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).
interest for deferment of advancetax
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).
23 May 2013
Interest u/s 234B and 234C need to be calculated on the tax on the income from partnership firm only, except share of profit which is exempted u/s 10(2A).
N.B:- Advance tax need not be paid on the presumptive income vide section 44AD(4). Hence, 234B and 234C doesn't apply on that income.
N.B:- Advance tax need not be paid on the presumptive income vide section 44AD(4). Hence, 234B and 234C doesn't apply on that income.
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23 May 2013
Thank you very much for correcting my mistake,
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