Updated Online video classes available for CA,CS,CMA for May20 and Nov20 batch. Call: 1800-3000-0505

Computing interest on income

vinayak (accounts executive)     01 November 2014

accounts executive 
 125 points

| My Other Post


I need to file ITR in July. As i was out of country i could not file it. My company has issued me a form 16.

Addionally, i need to pay taxes on the interest earned on my bank interest. I understand that

since i have not paid these by July 31st 2014. I need to pay penal interest on this.

Can anyone help me with any excel utility or tool to compute penal interest for belated returns.



Sahil Arora (Student)     01 November 2014

Sahil Arora
 7 likes  190 points

View Profile | My Other Post

If your Saving bank interest is below Rs. 10,000/-, then nil penalty, as you can claim deduction for bank interest u/s 80TTA


Mihir (Wealth Manager)     01 November 2014

Wealth Manager 
 620 likes  5278 points

View Profile | My Other Post

Check form 16 and 26AS. If you don't have any tax liability payable before taking into account interest from saving deposit, and your interest from saving deposit is below Rs. 10,000/-, then there will be nil tax payable and not interest over it.


CA SUKSHAM ARORA (CA)     01 November 2014

 35 likes  569 points

View Profile | My Other Post

agreed with above members

sravani kolagatla (i love to b the best)     02 November 2014

sravani kolagatla
i love to b the best 
 32 points

View Profile | My Other Post

I agree with above experts. But if you have taxable income after claiming deduction of this savings bank interest u/s 80TTA.. penality has to be paid under section 234A 234B nd 234C if your tax payable is more than 10000 before adjusting advance tax

vinayak (accounts executive)     02 November 2014

accounts executive 
 125 points

View Profile | My Other Post

I think i should have  provided some details in my post. My Apologies.

I need to pay 43896/-. Now, after detucting 10000/- it comes to 33386/- and this comes in the 30% tax bracket as i have salary more than 10Lakhs and my company has detucted TDS for this.

Now, how do i compute interest for the 33896/-. Can anyone help me.

I tried using an Online Website. It has done the following computation 

For 33386 Income above 10 Lakhs @ 30% bracket.

Tax: 10471

Interest (For August, Sept, Oct - Since i did not file in July 31st 2014)

234A: 416

234B: 837

234C: 386


Total: 1639


Total Tax to be paid: 10471 + 1639 = 12110.

I dont know why an interest of 1639 is charged.

Can anyone help me with the interest calculation here.





CA Bipin Kumar (Service)     02 November 2014

CA Bipin Kumar
 4 likes  250 points

View Profile | My Other Post

Mr Vinayak, interest is not being charged only for aug sept and oct. Interest u/s 234a is being charged for these 3 months for not filing returns. And 234 b and c is being charged for non deposition of advance tax. As per you are supposed to deposit tax till march 15 if your tax is above 10000. If you are paying after that or even in march penalty is imposable. As tax to be paid in installments like 30% till sept 15, 60% till dec 15 and 100% till march 15. Interest on non payment upto march is charged secondly interest charged upto july and lastly july onwards for non submission of returns. I suggest you to download excel utility from income tax site fill details and get the exact amt of tax as now 234a interest will change as november has started. If any information needed. Just me either as this portal or 7838084428

Leave a reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Popular Discussion

view more »