Section 234b & 234c

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Querist : Anonymous

Querist : Anonymous (Querist)

14 April 2015 Dear expert
if the assessed tax is RS. 10000. and only 2000 advance tax was paid on 15/9/2014. please tell me which section it will falls and how much interest have to pay if the assessee is individual.

plz reply..

CA PARAS BAFNA

CA PARAS BAFNA (Expert)

14 April 2015 Interest U/s 234B depends upon the date of payment. If you pay tax in this month only, interest U/s 234B is payable for 1 month @ 1% pm on 8000, which comes to Rs.80.
.
Interest U/s 234C is also payable.
It is payable for shortfall in advance tax and total interest payable U/s 234C will be Rs 230.
.

Querist : Anonymous

Querist : Anonymous (Querist)

15 April 2015 Dear paras sir
as you have replied above interest u/s 234B is to be 80 and interest u/s 234C is to be 230, actually i couldn't understand your reply that why both section interest will be applicable and how you have calculated it. plz reply in details......

CA PARAS BAFNA

CA PARAS BAFNA (Expert)

15 April 2015 234B- levied for Non-payment/Short Payment of Advance Tax.
.
234C- levied for deferment of advance tax installments.
.
For understanding the calculation you may refer-
https://taxguru.in/income-tax/section-234a-234b-234c-income-tax-act-1961.html

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