interest U/S 234

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Jaspreet kaur

Jaspreet kaur (Querist)
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07 March 2008 i want to knw abt Interest calculation under sec-234A,B,C....with eg....n from theory point of view also.

CA J M Pattanayak

CA J M Pattanayak (Expert)
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07 March 2008 Hi Jaspreet

Sec 234 A is paid for delay in payment of Tax beyond the due date of filling return. ( 31st July for Individual, 31st Oct for companies ).

It has to be paid @ 1% P.M. for months exceding the due date for filling.
Suppose Total tax due 10,000 for Individual as on 31st July 2007 and tax paid on 5th Nov'07. Den total interest under Sec 234 A will be 10,000*1% *5.

TDS deducted should be adjusted before calculating the total tax due.

CA J M Pattanayak

CA J M Pattanayak (Expert)
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07 March 2008 Sec 234 B is calculated if 90% of tax is not paid as on 31st Mar of the current year.
Rate of interest is also 1%.

It has to be calculated on the short fall of tax * 1% * months from end of current year till the due date of filing.

So incase of an individual it should be calculated for 4 months if the due date is not extended.

CA J M Pattanayak

CA J M Pattanayak (Expert)
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07 March 2008 Sec 234 C is too long to explain here .
I will do it in a word document n post it tomorrow.

Jaspreet kaur

Jaspreet kaur (Querist)
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08 March 2008 pls give an eg for 234B

Jaspreet kaur

Jaspreet kaur (Querist)
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08 March 2008 h