Interest u/s 234 C

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Rahul Ramesh (Querist)
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10 February 2010 I have a doubt regarding calculation of interest on income tax.
As per rule 119A, the amount of tax shall 'be rounded off to the nearest one hundred rupee and any fraction of Rs.100 shall be ignored'.
Thus if my net tax (including cess) is Rs 11666/- then should it be rounded off to Rs 11700 as it is the nearest Rs.100 or should it be rounded off as Rs 11600 as I have seen in some books.

Please clarify my doubts. If possible calculate the interest u/s 234 A,B&C if the net tax including cess for AY 2009-10 is Rs 11666/- and the return will be filed in february 2010.

Thanks in advance.

CA. Bikash Bogi

CA. Bikash Bogi (Expert)
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10 February 2010 It should be Rs.11600/-

Rahul Ramesh

Rahul Ramesh (Querist)
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10 February 2010 so what does the words
'rounded off to the nearest Rs.100/- ' means

Shouldn't it be Rs. 11700/-.

CA. Bikash Bogi

CA. Bikash Bogi (Expert)
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10 February 2010 There us a difference between Rounded off to Nearest 100 and Any fraction should be ignored.

Rounded off to nearest 100 in your means 11700/-

But in case it said that fraction should be ignored then it will 11600/-

Rahul Ramesh

Rahul Ramesh (Querist)
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10 February 2010 Rule 119A says both rounded off to nearest Rs.100/- and ignore any fraction of Rs.100/-

So what shall I take 11600 or 11700?

CA. Bikash Bogi

CA. Bikash Bogi (Expert)
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10 February 2010 In that case it will Rs. 11600/-

Rahul Ramesh

Rahul Ramesh (Querist)
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10 February 2010 thanks a lot

Rahul Ramesh

Rahul Ramesh (Querist)
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10 February 2010 what will be the interest under sec 234c?