Advance Tax on Capital Gain Income

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srinivasan (Querist)
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04 June 2011 Please help me...

One of our client (Company) sold the Land and Building on 06-01-2011, from this sale Long Term Capital Gain arised for the sum of Rs. 4,63,17,238. (Company have not any other income such as Business Income, Income from Other Sourches,etc,)

1. Company has to pay Capital Gain Tax on above Long Term Capitl Gain is 1,02,18,722

2.But Company have paid only Rs.1,02,00,000
on 06-03-2011.

So, How much Interest Company has to pay u/s 234c of It Act?

Wheher company has to pay Interest u/s 234c on remaining tax of Rs. 18722 or on above whole tax amount(Rs. 1,02,18,722)

Please tell me How much interest company has to pay....

Thanks in advance

CA MANOJ GUPTA

CA MANOJ GUPTA (Expert)
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05 June 2011 THE PROVISO TO SECTION 234C(1) PROVIDES RELIEF ONLY IF THE ENTIRE TAX PAYABLE ON CAPITAL GAIN IS PAID AS PART OF REMAINING INSTALMENTS OR BY 31 MARCH IF NO INSTALMENT IS PAYABLE.
IN THIS CASE THE CO HAS DEFAULTED IN PART
PROVISO WILL NOT APPLY AND INTT WILL HAVE TO BE PAID AS UNDER
1. ON 15 % OF RS 10218722 FOR THREE MONTHS
2. ON 45% OF 10218722 FOR THREE MONTHS
3. ON 75% OF 10218722 FOR THREE MONTHS
4. ON 10218722-10200000 FOR ONE MONTH
SEEMS ILLOGICAL BUT ITS THE LAW

CA MANOJ GUPTA
JODHPUR
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