Interest payment u/s 234c in case of ltcg

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This query is : Resolved

Pallavi Patel (Querist)

01 June 2014 Suppose the Long Term Capital Gain arised on 27th February,2014. The assessee is an Individual and he has not paid any tax till date. At what rate the interest is to be charged u/s 234C? Will it be only 1% for defaulting in payment for the last installment of advance payment i.e on 15th March?

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)

01 June 2014 Yes. Interest u/s 234C @1% per month for 1 month and interest u/s 234B @1% per month till the date of payment.

Note:

Advance tax is payable if the gross tax liability for a year is equal to or more than Rs. 10000/-.

If the assessee who is liable to pay advance tax has failed to pay or the advance tax paid is less than 90% of the tax payable then simple interest is payable under section 234B @ 1% p.m.

Guest

Guest (Expert)

02 June 2014 u/s 234 C @ 1 % for one month
U/s 234 B @ 1% till payment

If liability over 10000

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