Calculation of interest

This query is : Resolved

Share Report Follow Query Ask a Query

Nisha

Nisha (Querist)
Follow

25 August 2008 How to calculate interest u/s 234A,234B & 234C?

CA Shailesh +91 9393926464

CA Shailesh +91 9393926464 (Expert)
Follow

26 August 2008 Nishaji,

Better to go through the provisions form the act or any other material, it is very difficult to explain it here. However, the following example may help u i guess:

Suppose, my Total Income is Rs 3,25,000/- pa and i file return today i.e on 26-08-2008

Tax + Cess thereon will be Rs 47,895/-

Int u/s 234A:
1% pm or part thereof from the due date to the date of filing retun i.e. 1%*47800*1month = 478

Int u/s 234B:
1% pm or part thereof from the first date of financial year end (1-4-8) to the date of payment of tax(26-8-8)
1%*47800*5 months = 2390

Int u/s 234B:
For deferrment of advance tax
47800*30%*1%*3+47800*60%*1%*3+47800*100%*1%*1 = 1769