Hello Experts,
I read about Advanced tax payment related articles online, but information is bit confusing. Article on cleartax.in says
Interest under section 234B is applicable when:
Your tax liability after reducing TDS for the financial year is more than Rs 10,000 and you did not pay any advance tax.
Or
You paid advance tax, but advance tax paid is less than 90% of ‘assessed tax’.
However it's not clear if your tax liability after deducting TDS is less than Rs 10000 yet the advanced tax paid is less than 90% of assessed value.
E.g. My total tax liability is Rs 50000. So at least 45000 should have been paid by 31-March. However the TDS so far is 42000 so 8000 is balance which is less than 10000 yet, 42000 is less than 90% of 50000.
Which case now holds true in this scenario? Is interest under 234B applicable?
Any clarity would be great to know.
Regards.
Ram
CAclubindia
