One person has tax dues for 1999-2000AY amount 1700/- now he wants to pay it but thats the principle amount due that year, some interst must also be there. How to calculate that, any formula? Simply should I take 1% per month from then till now so in total 16 years meaning 192 months meaning 192% of 1700/- = 3264/- interest alone on 1700/- under just one section. Can anyone clarify if this is ok.
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Interest calculation for old tax due
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The assessee is liable to pay not only interest u/s 234 b but also under 234 c and 220. All the interest are to be paid and if assessee doesnot pay tax then return will be taken as invalid and 234 a will also come into play. Kindly handle with due care. There are endless possiblities of consequenses. Demand notice hasnt been furnished? If so interest on that also has to be taken. Best thing yoi can do is approach cit for payment of tax and interest and ask him to condone any penalty if so which would arise by bringing up this old case again.
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