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Calculation confusion for 234c interest

(Guest)

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

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5 Replies

Sarath Rajendran (Nil) (2791 Points)
Replied 21 March 2019

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

Ajay Venkatesh (Student CA Final ) (69 Points)
Replied 21 March 2019

235 C will be applicable only till 31/3- end of the FY(PY). the advance tax paid after 15 march but on or before 31/3 will be liable for interest u/s 234c at the rate of 1% for 1 month.

so on advance tax payable of 50000, u/s 44ad, paid after 15 march before 31 march . shortfall as on 15/3 being Rs. 50000
234c int- 50000*1%*1m. = Rs.500.