Intt. u/s 234A,B and C

This query is : Resolved

Shammi_Vision (Querist)
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24 March 2010 Dear Sir,
I want to clear my condfusion that the Interest payable u/s 234A, B and C shall be calcualted on the diff. between Tax payable and TDS Deducted or Advance Tax paid.

OR shall be calcualted otherwise.

plz clear my confusion.

Thanks
Shammi

CA Vijay Kumar Gupta

CA Vijay Kumar Gupta (Expert)
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24 March 2010 YOU ARE RIGHTLY CALCULATED.

Murtaza I Bhagat

Murtaza I Bhagat (Expert)
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24 March 2010 for example your tax liability is rs. 25000/- your tds is rs. 4000/- and you have paid advance tax of rs. 10000/- then on pending tax liabilities sec. 234A,B,C applies

CA Prashant Gupta

CA Prashant Gupta (Expert)
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24 March 2010 234A is for non furnishing of return or furnishing after due date. in this your treatement is right (tax-advance tax-tds)
234B is for advance tax i.e. till 90% is not paid as advance tax then also your treatment is right
234C is for also advance tax but for quarterly advance tax in this you have to calculate quarterly advance tax and interest will be for 3 month for every installment of advance tax. in this system is like yours but quarterly calculation effect advance tax deduction. like you paid full advance tax but for first quarter it is less then limit then you have to pay interest.