234c on capital gain
This query is : Resolved
23 October 2012
How interest will be calculated u/s 234C in the given situation :-
Capital Gain has arisen on 30.01.2011 whereas tax amount is deposited on 30.03.2012.
So whether the interest u/s 234C will be charged for 1 month(i.e. for the period 15.03.2011 to 31.03.2011) or whole i.e. as calculated in normal situations.
Please do reply as soon as possible.
Capital Gain has arisen on 30.01.2011 whereas tax amount is deposited on 30.03.2012.
So whether the interest u/s 234C will be charged for 1 month(i.e. for the period 15.03.2011 to 31.03.2011) or whole i.e. as calculated in normal situations.
Please do reply as soon as possible.
Dintakurthi Tirumala
(Expert)
23 October 2012
Interest u/s 234C for you case will charge for only one month i.e from 15.3.2011 to 30.3.2011. Because of you advance tax liability arises and knows to you about your tax before to the last installment due.
In the case of capital gain tax advance tax liability installments will start after the date of capital gain arises. For example in case you have capital gain as on 14th December then your advance tax liability installments will start from the 2nd installment due i.e from 15 th December. According to that on 15th December you have to pay second installment quantum of advance tax amount i.e 60% of the total tax liability. Thus your interest liability also starts from the second installment only if you any default to section 234C.
Such you advance tax liability starts from 15th March installment i.e 3rd installment and you have to pay 100% of total tax liability on or before 15th March. But you failed to pay it so you only liable for 3 rd installment failure interest only.
OM SAI SRI SAI JAI JAI SAI
In the case of capital gain tax advance tax liability installments will start after the date of capital gain arises. For example in case you have capital gain as on 14th December then your advance tax liability installments will start from the 2nd installment due i.e from 15 th December. According to that on 15th December you have to pay second installment quantum of advance tax amount i.e 60% of the total tax liability. Thus your interest liability also starts from the second installment only if you any default to section 234C.
Such you advance tax liability starts from 15th March installment i.e 3rd installment and you have to pay 100% of total tax liability on or before 15th March. But you failed to pay it so you only liable for 3 rd installment failure interest only.
OM SAI SRI SAI JAI JAI SAI
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