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Computing interest on income

vinayak (accounts executive) (125 Points)

01 November 2014

Hi,

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.

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6 Replies

Sahil Arora (Student) (190 Points)
Replied 01 November 2014

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) (5293 Points)
Replied 01 November 2014

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) (569 Points)
Replied 01 November 2014

agreed with above members

sravani kolagatla (i love to b the best) (32 Points)
Replied 02 November 2014

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) (125 Points)
Replied 02 November 2014

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) (250 Points)
Replied 02 November 2014

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