interest u/s 234C calculation
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
25 December 2010
i have no knowledge of interest calculation of section 234C. so ple tell me
25 December 2010
The Sec 234A relates to the interest leviable on the delay filing of return of Income by the the due date as defined u/s 139(1).
if any person fails to submit the ROI by the due date, then he has to be pay the above interest @ 1% simple interest payable per month for the period for which such default continues.
Sec 234B relates to the interest payable on the short payment of Advance Tax. if any assessee fails to pay the 90% of its assessed tax by 31st of March of the previous year to which such liability relates shall pay the above interest on the shortfall from the 1st day of AY to till the payment of Tax
Sec 234C relates to the interest on deferment of the advance tax, if any assessee fails to pay the installment of advance tax or pay short than required, shall pay such interest @1% per month on such short fall.
if any person fails to submit the ROI by the due date, then he has to be pay the above interest @ 1% simple interest payable per month for the period for which such default continues.
Sec 234B relates to the interest payable on the short payment of Advance Tax. if any assessee fails to pay the 90% of its assessed tax by 31st of March of the previous year to which such liability relates shall pay the above interest on the shortfall from the 1st day of AY to till the payment of Tax
Sec 234C relates to the interest on deferment of the advance tax, if any assessee fails to pay the installment of advance tax or pay short than required, shall pay such interest @1% per month on such short fall.
25 December 2010
Interest u/s 234C is to be calculated if the advance tax hasn't been sufficiently paid within the due dates.
Due dates and the amount required to be paid for
Companies
June 15th - 15% of Net tax
Sep 15th - 45% of net tax
Dec 15th - 75% of Net tax
March 15th - 100% of Net tax
Other assessees
Sep 15th - 30% of Net Tax
Dec 15th - 60% of Net Tax
Mar 15th - 100% of Net Tax
Net Tax = (Assessed Tax - TDS)
Due dates and the amount required to be paid for
Companies
June 15th - 15% of Net tax
Sep 15th - 45% of net tax
Dec 15th - 75% of Net tax
March 15th - 100% of Net tax
Other assessees
Sep 15th - 30% of Net Tax
Dec 15th - 60% of Net Tax
Mar 15th - 100% of Net Tax
Net Tax = (Assessed Tax - TDS)
25 December 2010
Say your Tax liabilty Is Rs 11 lacs & TDS deducted from you is Rs 1 Lac. Your Net Tax is Rs 10 Lacs.
If you are company you are required to pay advance tax of Rs 1.5 Lacs i.e. 15% of Net Tax of Rs 10 Lacs in 1t installment. Say you paid only Rs 50000/- so shortfall amount is Rs 1 lacs. Interest u/s 234C is (3%*100000)= Rs 3000 (3%= 1% per month for 3 months).
Follow this for first three installment for last installment shortfall interest will be 1% of shortfall amount.
If you are company you are required to pay advance tax of Rs 1.5 Lacs i.e. 15% of Net Tax of Rs 10 Lacs in 1t installment. Say you paid only Rs 50000/- so shortfall amount is Rs 1 lacs. Interest u/s 234C is (3%*100000)= Rs 3000 (3%= 1% per month for 3 months).
Follow this for first three installment for last installment shortfall interest will be 1% of shortfall amount.
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