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Advance tax loophole
Hi,
Want to know how interest on advance tax is calculated for Pvt ltd company.
Suppose I do not pay any advance tax till 15 december
And on 15th march I pay 100% of applicable tax.
In such case will I be liable to pay interest penalty ?
Replies (11)
Yes, interst will be charged u/s 234B.
| Originally posted by : Arvind Sharma | ||
 |
Yes, interst will be charged u/s 234B. |  |
I beg to differ.
Interest u/s 234B will be charged only in case where total advance tax paid during the previous (financial) year is less than the 90% of the tax liability. Since in your case you've already paid 100% of advance tax by 15th March you'll not be required to pay interest u/s 234B. However, you'll be required to pay interest u/s 234C for deferment in payment of advance tax.
Regards,
Ruben Balooni
Chartered Accountant
Ops, ya it is 234C
interest not charged us 234b, interest is charged us 234c
Agree with Ruben....
We pay some amount of tax for pvt Ltd Co upto 15 September & remains up to 90% we will pay on 15th March so interest will be charged us ?
Is there any limit of income for advance tax become mandatory?
ya, it is Rs. 10000. If estimated tax liability for whole year comes to below Rs. 10000, there is no need to pay AT then.
yes agree with ruban
installment should be
15% = till 15th June
45% = till 15th September
75% = till 15 th December and
90% = till 15th March
then there will not interact 234C
if you have not paid till 15 Th Marth & Less then 90 % than applicable 234B.
Thanks
Ramanuj
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