Interest calculation u/s 243b & 243c (advance tax)

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Querist : Anonymous

Querist : Anonymous (Querist)

08 August 2013 Hi My client did not pay 1st Installment of advance tax in September.Next 2 Installment he paid on time. I want to know that which section is applicable to calculate Interest.whether sec 243 B or 243 C. How to calculate Interest under these sections?
Please explain with example, if possible.
Its urgent.....
Thanks in advance

CA PARAS BAFNA

CA PARAS BAFNA (Expert)

08 August 2013 After paying the advance tax in the "desired" manner the client is having no tax liability.
.
In such a situation Section 234C only will be applicable, which you have to calculate
in the following manner-
.
Total Tax liability after TDS but before deduction advance Tax Installments is say --Rs. 100000/
.
Sept Quarter payable Rs. 30000/-
.
Interest For 3 months 30000*.01*3=900.
.

Querist : Anonymous

Querist : Anonymous (Querist)

12 August 2013 Hi,
1)Client having tax liability of Rs.84261 which he has to pay(his due date is on 30th Sept).
2)Tax assessed amount is say, 534261.30% of that amt is 160278.24.Whether interest will be chargeable on 160278.24@1%*3 or 30%+60%+100% of tax assess amount.Kindly clear that point.
3)Whether sec 234B will be applicable?

I used online Interest calculator in which both section was applicable

Ganeshbabu K

Ganeshbabu K (Expert)

15 August 2013 Refer

https://www.caclubindia.com/articles/interest-u-s-234a-234b-and-234c-15276.asp

and if you have paid advance tax less than 90% of assessed tax 234b comes applicable

Thanks & regards
Ganesh babu k

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