Sec 234 C

This query is : Resolved

HARIHARAN KRISHNAMURTHY (Querist)
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08 July 2010 Regarding the Interest due u/s 234 c

A Individual assessee- ( salaried) files the return of his income in July.

Total tax liability - INR 75004.

Adv tax paid by his employer1 before 15th Sep - INR 30,761 (more than 30 % of the tax due)
Adv tax paid by his employer1& 2 before 15 Dec - INR 48908 ( more than 60% of the tax due)

Advance tax paid by his employer 1,2& 3 -62980 ( less than 90% of the tax due)

Hence total shortfall INR 12,024.

What is the interest payable by the assessee under this section. Also is he liable to pay int u/s 234 B.

Possible answer: u/s 234 c -1% of the total shortfall of INR 12,024=120.24
U/s 234 B - 481 ( calculated @ 1% for 4 months on 12,024) .

- Is this correct.

Sunil Kr. Sanganeria

Sunil Kr. Sanganeria (Expert)
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09 July 2010 Since you have not paid 90% of total tax liability as an advance tax, you are liable to interest u/s 234 B on the shortfall amount @ 1% for every month from 01.04.2010 to the date of payment.

Both the calculation u/s 234B & 234C is correct.

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