Interest u/s 234

If there is short term capital gains then we have to give quaterwise details of the same in the return of income. Thus this affect the calculation of Interest U/s. 234-C. 

Suppose the assessee has received the entire gain in the first quater. Then how will be the interest get calculated.

Replies (3)

Harsh 

Intt. u/s 234 will be levied certainly

interest u/s 234C will be differ if the STCG occurs in last or second quarter. if STCG occurs in third Qtr then you need not to pay intt for defferment of advance tax u/s 234C for 1 & 2 Quarter. Intt u/s 234B and 234C will remain same

I did not understand. can you please explain giving an example.

 

Gaurav as the interest U/s 234C is levied for default of payment of tax on the income which you have earned if you dont have any income then no need to tax as there will be no liability. Now come to an example. if you have earned STCG in 3 Qtr then how you can pay that tax in 1st & 2nd installment of Adv tax. your need to pay your tax after u came to know of adv tax liabilty. when there isno liabilty no need to pay tax.

intt U/s 234A is levied for late furnishing of return so STCG will not affect the interest SO intt will  required to be paid

intt U/s 234B is levied for late payment of Adv Tax so STCG will not affect the interest because as er this section 100% adv tax is required to p\be paid till 31 Marchif you not pay the tax then you will required to pay

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