Advance Tax on MAT

This query is : Resolved

CA Dilip (Querist)
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04 April 2009 I received a Extraordinary income which is not chargeable to Tax, being a capital receipt. However since the same is passed through the P&L, MAT gets attracted.

Since the Extraordinary income was not anticipated or received and till December end I could not estimate my total income. And thus failed to pay my advance tax, and 234 get attracted.

I’m willing pay interest u/s 234 from Jan to March 08, but can I escape my interest liability u/s 234 for the first 6 months of interest computation.

CA. B.SRINIVASULU

CA. B.SRINIVASULU (Expert)
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04 April 2009 Please refer to Section 234c(1)exemption clause.

No interest will be levied in respect of any shortfall in the payment of advance tax due on the returned income if the shortfallis on account of capital gains or lottery income or gambling income

and the assessee has paid the advance tax on immediate installment.

If you have paid on or before 31st march then you can claim exemption of interest for the period of first 9 months.

If you are paying now, you cannot claim the exemption under this section. you have to pay interest for the full period.

Sanjay Soni

Sanjay Soni (Expert)
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04 April 2009 agreed

CA Dilip

CA Dilip (Querist)
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04 April 2009 Is there any case law which says 234 C is not applicable for MAT tax ?

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