Interest u/s 234 abc

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

14 July 2013 Dear Sir,

I am facing some problem in calculation for interest u/s 234 ABC.

Data is as follows:
Data of a Senior Citizen person, Male
Net Income after deductions: Rs.686000
As per this my tax lia arises: Rs 64066
I have not deposited any Advance tax.
My tds deduction is Rs. 44830.
I have deposited self assessment tax on 30th may Rs 12000.

I have calculated interest u/s 234B- Rs.550
234C- Rs. 711.
Balance tax to be paid is Rs. 8490.
Pls advice the correct calculation with computation.
Thanks in advance

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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14 July 2013 1. Net Tax liability after TDS = 19236
.
2. Amount Paid on 30.05.13 =12000
.
3. Net Liability after 30.05.13= 7236.
.

4. Interest U/s 234A- Not Applicable as you will file the return as soon as I will give you the tax amount ( not real money ... ).
.
5. Interest U/s 234B 192*2+72*2=528
(Omitted the fraction and taken "hundreds")
.
6. Interest U/s 234C-
5700*.03+11500*.03+19200*.01=708.
.
7. Total Liability to be paid 7236+528+708=8472. You can pay 8470.
.

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Ganeshbabu K

Ganeshbabu K (Expert)
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14 July 2013 Let me tell you..

If you can say what is the source of income of senior citizen--we will let you know advance tax provisions applicable to you or not..

Section 207(1)--Advance tax charging section.

A new clause was inserted from A.Y.2013-14 onwards as below

Section 207(2) The provisions of sub-section (1) shall not apply to an individual resident in India, who—

(a) does not have any income chargeable under the head "Profits and gains of business or profession"; and

(b) is of the age of sixty years or more at any time during the previous year.]

So

1)if source of income if senior citizen is other than business and profession Advance tax provisions not applicable to senior citizen by virtue of section 207(2) of income tax Act.

Consequently interest 234B ,234C may not be applicable

2)As duedate to file return not yet elapsed so interest 234A not applicable to you

And you just need to pay Rs.7236 only..

However if income of senior citizen arises from business and profession i agree with the computation of paras sir..

Note: Opinion was provided assuming asesse is about to file return of income for A.Y.2013-14

Thanks & regards
Ganesh babu k

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Querist : Anonymous

Querist : Anonymous (Querist)

15 July 2013 Sir, the source of income of Sr. Citizen is Part time Job + Pension from PSU + Amount invested in FD's in bank. Assesse wanted to file return for AY 13-14.

Pls advice ganesh Sir.

Ganeshbabu K

Ganeshbabu K (Expert)
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15 July 2013 Yes..in that case Advance tax provisions not applicable to senior citizen assesse by virtue of Section 207(2) as explained by me above

So interest 234B,234C NOT APPLICABLE

as duedate was not yet expired..interest 234A also not applicable

So just pay tax payable only no interest will be applicable to you

Thanks & regards
Ganesh babu k

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Querist : Anonymous

Querist : Anonymous (Querist)

15 July 2013 Thanks a lot Sir for the above guidance

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