INTEREST U/S 234B & C

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navdeep

navdeep (Querist)
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22 September 2008 CAN ANY ONE HELP ON CALCULATION OF IN.T U/S 234B & 234C WHEN THEY ARE LEVIED UNDER THE ACT?

CA Vivek Jain

CA Vivek Jain (Expert)
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22 September 2008 Assuming that self assessment tax is paid this month (August),

Interest u/s 234B for default in payment of advance tax is Rs.664 (1% of Rs13270 for 5 months)

Interest u/s 234C for deferment of advance tax is Rs.846

Interest u/s 234A at 1% will also be added as return is not filed by 31/07/08 (Rs.133)

I assume education cess has already been included in total tax Rs.28270

CA Vivek Jain

CA Vivek Jain (Expert)
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22 September 2008 Computation of Interest U/s 234B Assessed Tax - 15270/- i.e.(28270 - 15000) Rounded upto multiple of 100 (always lower side) Rs.15200/-. Interest @ 1% for 5 months Rs.660/- Computation of Interest U/s 234C Tax Liability Rs28270/- 30% Payable By Sept. Rs8481 Less: Paid Nil Short Fall 8481/- Rounded upto 8400/- Interest @ 1% for 3months 252/- 60% payable by Dec Rs. 16962/- Less; Paid Rs. 5000/- Short Fall Rs. 11962/- Rounded upto Rs. 11900/- Interest @ 1% for 3 months Rs. 507/- 100 % payable by March Rs28270/- Less: Paid Rs. 15000/- Short Fall Rs. 13270/- Rounded upto Rs. 13200/- Interest @ 1 % for 1 month Rs132/- Total Interest U/S 234C 252+507+132=891/