Interest on income tax for employee

Save Share

This query is : Resolved

Prasad Naidu (Querist)

11 July 2013 Can i know percentage of interest on income tax.

one of the my employee suppose to pay income tax for the F.Y 2012-13 is Rs.1,00,000/- but we are deductiong from salary Rs.80,000/- for the F.Y 2012-13.

Now we are generated Form 16 and payable as showing as rs.20,000/-

Now employee wants to pay Rs.20,000/-. Is there any interest have to pay to department.
If, it is there, how much is the percentage and how to calculate the interest.

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)

11 July 2013 Yes. Interest u/s.234B & Sec.234C will apply

Section 234 B : Interest payable for default in payment of advance tax.interest @ 1% per month is payable on the amount of income tax paid after the end of the financial year.

Section 234 C : Interest payable for deferment of advance tax Interest is payable @ 1% for 3 months on the amount of shortfall in payment of advance tax became due on 15th June (applicable only to Corporate assessees), 15th September (all assesses) and 15th December (all assessees) and interest @ 1% on the amount of shortfall in payment of advance tax became due on 15th March (all assessees).

Interest calculators are available in files section you can download and use the same

Message likes : 1 times

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