sec 234B & 234C

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varsha (Querist)

31 August 2016 Hi I filled my ITR for FY 15-16 within due date and paid self assessment tax and there was a advance tax liability which I did not pay at all and for that default sec 234B attracted, but I got notice from IT dept. That interest penalty is liable u/s 234B as well 234c also. Well 234c is for deferment of adv tax, but I defaulted in payment of whole advance tax which falls under 234b then why also 234 c get attracted as per It Dept. So please help me in this regard, what should I do and thanks I advance for your valuable answer

Shridhar Hegde

Shridhar Hegde (Expert)

31 August 2016 (1) On or before 15th September is less than 30% of the tax due on the returned income;

(2) On or before 15th December is less than 60% of the tax due on the returned income, then the assessee shall be liable to pay simple interest @ 1% per month on the shortfall for a period of 3 Months on the amount of such shortfall (i.e. 3%)

(C) Where the whole amount of advance tax paid by any assessee on or before 15th March is less than the tax due on the income returned then the assessee shall be liable to pay simple interest @ 1% on the amount of shortfall from the tax due on the returned income. This applies to companies as well as to other assessees.

In your ITR you have to pay interest also under sec 234 b and c

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