Interest U/S.234

Page no : 2

Mukesh Jha (STUDIENT) (21 Points)
Replied 28 July 2010

Section 234 A	For Default's in Furnishing Return of Income
Section 234 B	Interest For Default's In Payment of Advance Tax
Section 234 C	For Deferment of Advance Tax

Under Section 234 A (For Default's in Furnishing Return of Income)
If the Return of income is furnished after the due date or is not furnished the assessee is liable to pay simpal interest at the rate 1% per month or part of the month commencing on the date immediately following the due date for filling the return and ending on the date of furnishing of the return ,or where no return is has been furnished on the date of completation of the assement u/s 144interest is to be paid on the amount of tax as determined u/s 143(1).

Calculation 234 B and 234 C Interest for Non-Corporate Assessees
Interest Calculation upto 30th July
Total Tax on Income				2,149,796.12
Less: TDS Receivable				2,122,357.00
				27,439.12
Less: Advance Tax Paid				-
Balance Tax Payable				27,439.12
Under Section 234 B (Interest For Default's In Payment of Advance Tax)

Amount on which interst has to be paid			27,439.12
Months			4
Rate of Interest			1.00%
Interest Amount			1,097.56	1,098.00
Under Section 234 C (For Deferment of Advance Tax)
	For 1^st Instalment	For 2^nd Instalment	For 3^rd Instalment
% of Advance tax to be paid	30.00%	60.00%	100.00%
Amount Payable	8,231.74	16,463.47	27,439.12
Advance Tax Paid	-	-	-
Amount on which interest has to be paid	8,231.74	16,463.47	27,439.12
Months	3	3	1
Rate of Interest	1.00%	1.00%	1.00%
Interest Amount	246.00	492.00	273.00	1,011.00
Net Tax Payable (including Interest)				29,548.12
Advance Tax Paid Details
Particulars	Paid upto	Amount Paid in each instalment	Cumulative advance tax paid
Advance Tax Paid upto	15^th Sept	-	-
Advance Tax Paid upto	15^th Dec	-	-
Advance Tax Paid upto	15^th Mar	-	-

SATYANARAYANA (PROPRIETOR) (34 Points)
Replied 07 August 2010

My net Income after Deductions Rs. 2,32,580/- Assessment year 2009-10. Tax on Total Income is Rs. 8258/-,

Interest U/s. 234A,B&C

I want to calculate interest theses sections

SATYANARAYANA (PROPRIETOR) (34 Points)
Replied 07 August 2010

Income from Business after deductions 232580/-

Tax on Total Income 8,258/-

For the Assessment Year 2009-10 I am not paid any advance Tax

I want to know Interest U/s. 234A,B&C

Arvind (manager) (23 Points)
Replied 25 August 2012

For an salaried individual, TDS deducted at source is short by Rs. 137558/- and the same payable for AY 12-13, So how to calulate the interest on this amount as on date.

Avinash Kumar (CA Final Student & Working as Deputy Manager Accounts) (79 Points)
Replied 27 August 2012

Posted By Praveen Ji

Hi Hemant

Please find the calculation Below.

Interest U/s 234A( Taken as Return filied in the month of Sep 2008)

Interest = 10217*1%*2=204/-

Interest u/s 234B

Interest= 10217*1%*6Months=613/-

Interest U/s 234C

Interest -Sept- 30% of 10217= 10217*30%*1%*3=92/-

Interest -Dec- 60% of 10217 =10217*60%*1%*3=184/-

Interest - Mar- 100% of 10217= 10217*100%*1%=102/-

Total Interest U/s 234C = 378/-

Therefore Total Interest Payable = 204+613+378=1195/-

Sir I have a confusion please help to understand , Calculation U/s 234B is to be calculated upto the day of payment of tax or upto to the due date of filling of return? In above case return is filled late so assesse is paying intt u/s 234B & 234A after 31st july( for august & sept). I am confuse that why to pay interest under both section on same amount for same period in case return is filed late?