My client has failed to pay advances taxes. Tax audit is applicable to him. In the last month i.e, August we have calculated taxes along with interest and payment is made. But return filing is pending . Now when i see in java mode, 234B and 234C is calculated again.
Should the interest be paid again?
How is interest calculated? Is it till the date of payment or till the date of filing?
19 September 2018
Yes... Definitely will be pay if not filed in August as per Your calculations.
Bcoz,
Section 234A: Delay in filing Income Tax Return
Section 234B: Incomplete Payment of Tax: In case an individual has to pay Rs 10,000 or more as tax in a fiscal year, then advance tax is applicable. The tax dues that are paid at a specific time period, as regulated by the Income Tax Department are termed as advance taxes. Businessmen, self-employed professionals, and salaried employees are liable to pay advance tax, where tax payable amounts to Rs 10,000. Under Section 44AD, when a taxpayer opts for computing business income, which has a turnover of 8% on presumptive basis, he is exempted from paying advance tax. Senior citizens above 60 years and with no income also enjoy tax exemptions under this section.
The taxpayer should have paid the maximum amount (least 90%) of the total tax payable by the end of the financial year. Failure to pay the tax, if the amount is more than 10% of the liability, then a penalty of simple interest 1% will be charged under Section 234B.
Advance Tax means paying your tax dues based on the dates (usually quarterly) provided by the income tax department. If you don't pay advance tax, you may be liable to pay interest under section 234B.
Section 243C: Delay in Periodic Payment of Tax: Income tax should be paid on time every financial year to avoid interest and penalty on late payment. Advance tax can be paid on the dates mentioned below:
15% of advance tax on or before June 15 in case of corporate taxpayer. 45% and 30% tax advance to be paid by corporate and noncorporate taxpayer respectively, on or before September 15. 60% and 75% of tax advance by non-corporate and corporate taxpayers should be paid on or before December 15. 100% tax advance by both corporate and noncorporate taxpayers should be paid on or before March 15.
19 September 2018
So, The Interest calculated by You on August-18. But You are not file the ITR on or before 31st August. Then September month is crossing and Calculate interest with September and Pay (The Calculated interest is enough 1st sep to 30th Sep)
CAclubindia
