Under section 243C of the Income Tax Act, if there is delay in payment of Advance Tax , is the penalty @ 1% per month for three months to be paid for full three months or is interest payable only for the number of days of delay in payment.
Example:
If the shortfall is Rs. 10,000 and the payment is made on 20th December when 17th December was the due date. Will I be liable to pay
1/100 X 10000=100 for three months= Rs. 300 as penalty or penalty for only 3 days i.e about Rs. 30.
Thanking you,
Yours sincerely,
Kartikeya Bhargava
CAclubindia
