intt. on income tax

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deepak

deepak (Querist)
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16 March 2010 How To Calculate Interest U/s 234-A,B & C On income Tax. Kindly Explain??????????

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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16 March 2010 Interest u/s 234A.
1)Applicability:-
If the return of income is not filed with in the due date of return filing.
2) Rate of interest:-
1% for every month or part of a month's delay.
3)Computation:-
TDS/TCS/advance tax paid may be reduced from the tax due. The balance figure is amount of tax on which interst is payable.
4) Interest:-
234A = amount as in 3 above X 1/100 X number of months or part thereof.

Pragnesh

Pragnesh (Expert)
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18 March 2010 Dear Deepak you will get idea on the basis of this example.

1) 15,759 (30% of 52,530) 1st installment Adv. Tax Due by 15-09-08
2) 15,579 (30% of 52,530) 2nd installment Adv. Tax Due by 15-12-08
3) 21,012 (40% of 52,530) 3rd installment Adv. Tax Due by 15-03-09

234C Interest for non payment of Adv. Tax. (Up to 31st March)
1) Not paid: Interest for 7 months @1% =Rs. 1,103
2) Not paid: Interest for 4 months @1% =Rs. 0,630
3) Not paid: Interest for 1 months @1% =Rs. 0,210

Total interest u/s 234C (1103+630+210)= Rs.1,943

234B Interest: (From 1.4.09 to 31.7.09)
April 09 month interest on Rs.52530 @1%= Rs.525

If you do not pay the tax with interest by May, then you have to go on adding Rs.525 per month till July Month.

If you do not pay the tax till 31st July 09, then the interest u/s 234A starts from 1st August 09.

Your interest due:
1,943 Sec.234C interest
0,525 Sec.234B interest
--------
2,468 till 30th April 09.

Pls. Revert back in case more clarification required.

Regards
Pragnesh

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