Computation of interest under section 234c

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Sonakshi Mangla (Querist)
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08 May 2015 Hi,

One of my clients has earned capital gain income on 31.03.2014 and tax due on the same was deposited in Nov 2014... while making the computation of interest under section 234C, i didn't consider this income since it income was earned after 15th March.... Few days back i received an intimation u/s 143(1) claiming interest u/s 234C. So is the demand valid?
Do we need to pay int even if income is earned after 15th March?

Amol S Joglekar

Amol S Joglekar (Expert)
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08 May 2015 Sec 234C:
for the amount of capital gains;

the assessee has paid the whole of the amount of tax payable in respect of such income,
where no advance tax instalments are due, by the 31st day of March of the financial year.

In your case you paid the tax, it seems, in Nov 2014. and Hence 234C interest is leviable.

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