what if the client pays the Advance tax(AT) post due date , coz sometimes on the last day Banks not captures/accept AT payment. E.g. on 15th Dec, 2017, Client was not successful in making the payment , however he urges to pay AT on next working Day. Is it advisable to Client to make the payment post due date. Whether it will result in saving of Interest u/s 234C or Whether it will attract interest for all the 3 months irrespective of advance tax payment made in between ?Kindly Advice.
18 December 2017
As far as S.234C is concerned, any delay would attract interest for the entire quarter.
Interest for deferment of advance tax.
234C. (1) Where in any financial year,—
(a) an assessee, other than the assessee referred to in clause (b), who is liable to pay advance tax under section 208 has failed to pay such tax or—
(i) the advance tax paid by such assessee on its current income on or before the 15th day of June is less than fifteen per cent of the tax due on the returned income or the amount of such advance tax paid on or before the 15th day of September is less than forty-five per cent of the tax due on the returned income or the amount of such advance tax paid on or before the 15th day of December is less than seventy-five per cent of the tax due on the returned income, then, the assessee shall be liable to pay simple interest at the rate of one per cent per month for a period of three months on the amount of the shortfall from fifteen per cent or forty-five per cent or seventy-five per cent, as the case may be, of the tax due on the returned income;
(ii) the advance tax paid by the assessee on the current income on or before the 15th day of March is less than the tax due on the returned income, then, the assessee shall be liable to pay simple interest at the rate of one per cent on the amount of the shortfall from the tax due on the returned income:
Provided that if the advance tax paid by the assessee on the current income, on or before the 15th day of June or the 15th day of September, is not less than twelve per cent or, as the case may be, thirty-six per cent of the tax due on the returned income, then, the assessee shall not be liable to pay any interest on the amount of the shortfall on those dates;]
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