If you want to know the tax rates of block assessment covered us 147 wherein the assess of various AY are covered then the tax rates of respective year shall be applied. it means suppose in AY 2019-20 the case of the assessee for AY 2015-16 to 2018-19 is opened us 147 then while passing the Assessment order the demand notice us 156 shall be calculated using the tax rates applicable for assessment year 15-16 to assessment year 18-19. separate calculation shall be made for each assessment year.
now, the question arise of period for 234 B. 234 B shall be application once the assessee fails to pay 90 percent of estimated tax liabilities in the form of advanced tax. it shall be calculated from 1/04 of next assessment year. rate shall be 1% pm or part of the month. now, in the cases of assessment, if the demands of tax liability increases, then in such a case, interest calculation shall be varied. let's take a short example.
suppose, assessee advance tax liability estimated for AY 17-18 to be Rs 10 lacs and assessee pay only rs 8,50,000 UpTo 31/03/17. now, 234 B shall attract. once a charging section attract we should forgot about 90 percent criteria. now, the interest shall be calculated on 150000 and not on 100000. now assesse say filed a ROI on 31/10/2017 (after the due date) and pay self assessment tax us 140 A including fees and interest us 234 A say RS 160000(appx). now, assessee shall have to pay interest us 234 b from 01/04/2017 to 31/10/2017 on short payment of 150000 us 140 A which will be subject to adjust. now, the AO passes the order us 147 for assessment year 17-18 us 147 on 31/03/19. now the interest us 234 b shall be recalculated in ITNS sheet.. which shall be a under.. let's say tax liability determined us 147 shall be 12 lacs. nos overall short payment is rs 2 lacs. however assessee paid 150000 on 31/10/17.
so calculation shall be as under
from 01/04/17 to 31/10/2017 - 350000*1/100* no of months . reason of 350000 since it's the actual short payment towards the tax liability which the assessee not paid. however since he pays on 31/10 rs 150000 towards Taxes now default shall be 200000. further interest for Rs 200000 from 01/11 to 31/03/19 shall be calculated at the rate of 1 percent. suppose this interest come Rs 20,000 and assessee paid interest us 234 B us 140 A is Rs 15000 now assesse have to pay Balance Rs 5000 within 30 days of demand notice us 156 served in pursuant of order of assessment us 147.
the tax liability of 234 A however shall be recalculated on the amount assessed however the period of default shall in no cases shall extend beyond the actual date of filing of ROI
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