I read the articles on interest regarding the computation of interest in regards to 234C. but i still can't clearly understand them.
So can you please tell me with an example.
A person has a tax liability of 50,000 and is filing under 44AD for fy 2018-2019. but as the due date of 15 March has passed. now the taxpayer has to pay interest under 234C
So please can you show me how will the interest on 234C be calculated on it
|
Period of Amount on which |
Rate of Interest |
Period of Interest |
Amount on which interest is calculated |
|
If Advance Tax paid on or before June 15 is less than 15% of the Amount* |
Simple interest @ 1% per month |
3 months |
15% of Amount* less tax already deposited before June 15 |
|
If Advance Tax paid on or before September 15 is less than 45% of the Amount* |
Simple interest @ 1% per month |
3 months |
45% of Amount* less tax already deposited before September 15 |
|
If Advance Tax paid on or before December 15 is less than 75% of the Amount* |
Simple interest @ 1% per month |
3 months |
75% of Amount* less tax already deposited before December 15 |
|
If Advance Tax paid on or before March 15 is less than 100% of the Amount* |
Simple interest @ 1% per month |
3 months |
100% of Amount* less tax already deposited before March 15 |
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