Calculation of interest under section 234a

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VITHAL (Querist)
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21 June 2014 Dear Experts,

I need to know the interest for the below case :

A) Fabricator business-Individual and now he is going to file return form IV.

B) His gross tax liability is Rs.870/-now my question is how much interest he has pay if he wants to file the return now U/s 234a or 234b ?

Hope i will get quick response.

Regards
Vithal

CA Sreenivasa Rao Munaga

CA Sreenivasa Rao Munaga (Expert)
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21 June 2014 Interest U/s 234B & 234C will not be applicable in this scenario as the gross tax liability does not exceed Rs. 10,000. As per sec 208 when gross tax liability exceeds Rs. 10,000 then only payment of advance tax will arise.
In your case 234B and 234C will not applicable as the gross tax liability does not exceed Rs. 10,000
As far as 234A is concerned, if you have not filed return within the due date then u need to pay interest @1% on gross tax liability per month.
Thanks
Ravi & Sreenivasa
Chartered accountants
Partner

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VITHAL

VITHAL (Querist)
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21 June 2014 Dear Sir,

Thank you so much for clarifying my doubts.

regards
Vithal

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