Festive Savings Are Here. Get 10% OFF on All CCI Pro Plans. Subscribe Now!

Interest on advance tax

Save Share

Join Us Follow Us Add as Source

This query is : Resolved

Report Query Ask a Query

Querist : Anonymous

Querist : Anonymous (Querist)

29 May 2010 I have a total tax liability of Rs.38823 for FY 2009-10 out of which Rs.1569 is yet to be paid. This arising due to fixed-deposit-interest-income. (The bank already deducted 10% at source, I have to pay the remaining.) My question is do I have to pay 1% interest per month on this liability?

Here are the details,

Total income tax .... 38823
TDS by employer .... 35772
TDS by bank .... 1482
Tax payable .... 1569
Interest on tax payable .... ????

Thanks,

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)

29 May 2010 YOU ARE NOT REQUIRED TO PAY INTEREST.

Rahul Gupta

Rahul Gupta (Expert)

30 May 2010 Agreed. No interest to be paid. Advance tax liability arises if the amount of tax payable after TDS exceeds Rs 5000.
In your case, its less than Rs.5000 (Rs.1569 only), so no interest.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now