Interest u/s 234b

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Pankaj (Querist)

20 June 2015 Hi... An individual assesses have tax liability of 11,60,000/-. he has not deposited any advance tax. pls calculate interest u/s 234b & 234c.

CMA MALHAR BEHERA

CMA MALHAR BEHERA (Expert)

20 June 2015 1.Interest under section 234B:

234B will be applicable when total advance tax paid is less than 90 % Tax Payable. This will be charged at 1% per month till you pay your remaining taxes.

Total Tax Payable : 11,60,000/-
Advance Tax paid till 31st March : 0
Balance Tax Payable as on31st March : 11,60,000/-
Interest @ 1% / Month on 11,60,000/-

2.Interest under section 234C:

i)Advance Tax Payable upto 15th September(At least 30% of Total Tax Liability) :3,48,000/-

Shortfall in Advance Tax payment:3,48,000/-

Interest Payable u/s 234 C (1% per month for 3 months on shortfall, if Total Tax Liability is more than Rs. 10,000/-): 10440/-

ii)Advance Tax Payable upto 15th December(At least 60% of Total Tax Liability) : 6,96,000/-

Shortfall in Advance Tax payment:6,96,000/-

Interest Payable u/s 234 C (1% per month for 3 months on shortfall, if Total Tax Liability is more than Rs. 10,000/-): 20,880/-

iii)Advance Tax Payable upto 15th March(At least 100% of Total Tax Liability) : 11,60,000/-

Shortfall in Advance Tax payment: 11,60,000/-

Interest Payable u/s 234 C (1% per month for 3 months on shortfall, if Total Tax Liability is more than Rs. 10,000/-): 11,600/-

Total Interest payable u/s 234 C :
(10,440+20,880+11,600)= 42,920/-

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