Interest Calculation?

Originally posted by : john
	Plz calculate Interest under section 234A, 234B, 234C A.Y.2011-12, Date of Filing 11/06/2011, Due Date:31-jul-2011,  Net Taxable Income :877922 Tax on above :117377 Edu cess:   3521 Total Tax & Cess:120898 TDS Paid: B4 15 sep 10 :12823 B4 15 Dec 10: 13130 B4 15 Mar 11: 31456 Total TDS :57409 Thank You

Mr. John, first be clear that it is TDS paid or Advance tax paid. I think it is advance tax paid which you have written wrongly as TDS paid.

however, if it is TDS deducted by other parties then:

and if it is advance tax paid then

yes it is TDS PAID 

before 15 sep

before 15 dec & before 31 mar

But Dear C.A. Ashu agarwal & chetan both of you have a complete different answer for a single question.

plz clearify which one is right and which one is wrong & why.

@ Mr. john

section 234A levies the interest  for not filing the Return of INcome on time.

section 234B levies the interest for not paying the advance tax. (interest is to be charged from 1st April of the A.Y.)

section 234C levies the interst for not paying the adance tax timely (interst is to be charged upto 31st march of the financial year)

Mr. Chetan has not considered the interest u/s 234B.

PLZ CHECK & IF NECESSARY CORRECT THE ATTACH INTEREST CALCULATION

THANK YOU

Originally posted by : john
	PLZ CHECK & IF NECESSARY CORRECT THE ATTACH INTEREST CALCULATION THANK YOU

1. No interest u/s 234B is payable if 90% of assessed tax payable has been paid as advance tax. however, if advance tax paid is less than 90% of the assessed tax, then the interest u/s 234B is payable on the whole amount of (assessed tax - advance tax).

2. the amount on which interest is to be charged to be rounded off downward in hundreds.

under 234 A interest - NIL

under   234 B   interest is payable if the advance tax paid is less than 90% of tax payable @ 1% till the date of payment.

Tax liability = 120898

90% of Tax payable = 120898*90% = 108808.20 = 108808

But advance tax paid = 57409

Interest to be paid under 234B = (108808-57409)*1%*3/12 = 51399*1%*3/12 = 128.

Under 234C interest is payable if advance tax paid per quarter is less than advance tax payable per qurater @ 1%

IInd Quarter - {(120898*30%)-12823}*1%*3/12 = 23466*1%*3/12 = 58.616 = 59

IIIrd Quarter - {(120898*60%)-25953}*1%*3/12 = 46586*1%*3/12 = 116

IVth Quarter - {(120898*100%)-57409}*1%*3/12 = 63489*1%*3/12 = 158.72 = 159

Total interest u/s 234C = 59+116+159 = 331

Total Interest u/s 234A,234B,234C = 0+128+331 = 459

Dear Jhon pls say me if i went wrong.

Thank You

Originally posted by : naga kiran kumar
	under 234 A interest - NIL under   234 B   interest is payable if the advance tax paid is less than 90% of tax payable @ 1% till the date of payment. Tax liability = 120898 90% of Tax payable = 120898*90% = 108808.20 = 108808 But advance tax paid = 57409 Interest to be paid under 234B = (108808-57409)*1%*3/12 = 51399*1%*3/12 = 128. Under 234C interest is payable if advance tax paid per quarter is less than advance tax payable per qurater @ 1% IInd Quarter - {(120898*30%)-12823}*1%*3/12 = 23466*1%*3/12 = 58.616 = 59 IIIrd Quarter - {(120898*60%)-25953}*1%*3/12 = 46586*1%*3/12 = 116 IVth Quarter - {(120898*100%)-57409}*1%*3/12 = 63489*1%*3/12 = 158.72 = 159 Total interest u/s 234C = 59+116+159 = 331 Total Interest u/s 234A,234B,234C = 0+128+331 = 459 Dear Jhon pls say me if i went wrong. Thank You

Dear Naga Kiran Kumar,

you are right except the followings:

1. No interest u/s 234B is payable if 90% of assessed tax payable has been paid as advance tax. however, if advance tax paid is less than 90% of the assessed tax, then the interest u/s 234B is payable on the whole amount of (assessed tax - advance tax).

2. the amount on which interest is to be charged to be rounded off downward in hundreds.

3. The amount of Rs.57409.00 is TDS not advance tax paid.

4. Rate of interest is 1% per month not 1% per anum

Rectify your answer in regard to the above points, then it shall be correct.

B€ @ LW @ ¥$ ]-[ @ Pp¥

Calculation of Anshu Aggarwal is correct.

@ anshu agarwal sir,

then in that case interest u/s 234B must be

= (120898-57409)*1%*3 = 1905

Thank you sir.