Hi,
My total tax for 2008-09 was 160000. I paid Rs 140000 before 31-march-09.
Am I required to pay penel interest on remaining 20000?
Regards
Amit
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advance tax payment
Replies (11)
Under the provisions of IT act ( section 234B), if the amount paid as advance tax is less than 90% of assessed tax, then 1 % per month or part of the month on the amount of short fall shall be paid as penal interest from 1st of April of next following year to the date of amount actually paid.
In your case it is yes, you will have to pay penal interest from 1st of April as the advance tax paid is less then 90% of assessed tax.
You have to pay simple interest @ 1% on 4000/- u/s 234 B,
As an assessee who has paid advance tax but the amount of advance tax paid by him is less than 90% on assessed tax - simple interest @ 1%
Penal interest at 1% pm to be calculated on the amount of short fall. In your case it is on Rs. 20,000.
Request to Mr. Jiwan to get clarified on this.
Yes, Mr Ramanju is right
1% pm to be calculated on the amount of short fall. In your case it is on Rs. 20,000
I am extreemly sorry
interest 1% on 20000/- not in 4000/-
Hi,
What if I paid 10000 in may and rest now?
Regards
Amit
Till May, the penal interest of 1% per month is on Rs. 20000 and thereafter it is on Rs. 10,000 till you pay the rest.
Thanks every one for responses. This will be called as "interest due to deferment of advance tax (section 234C)" or " default in payment of advance tax(section 234B)" ?
Look forward to your responses to
"Thanks every one for responses. This will be called as "interest due to deferment of advance tax (section 234C)" or " default in payment of advance tax(section 234B)" ?"
Amit
what is the provision of income tax if 90% or more of advance tax has been paid during the year. can we pay balance tax ie.10% or less is to be paid without interest.
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