Interest u/s 234 A, 234B and 234 C question

no...

Int u/s 234A/B/C is always computed on Tax Payable after considering TDS & Advance Tax....

To make things more clearer, let me add some figures to the question.

Say total tax payable was 7.5 lakh and advance tax paid was only 475000. No TDS involved.

Assume the return was filed 1 months after the due date, so interest u/s 234 A  = 275000 * 1% = 2750

At the time of filing return, the person in question paid 2,75,000 as self assessment tax, but did not pay the interest of 2750.

Also assume that in the above case, interest u/s 234c was 20,000.

This interest was also not paid by the assessee at the time of filing self assessment tax.

Interest u/s 234B till the month of filing return was 19250, which was also not paid at the time of self assessment tax.

Say the assessment order was completed 24 months after filing the rerurn.

Would interest of 1% for 24 months also be liable to be paid on 2750 + 20,000 + 19250 ?

It is need to be noted that Self asstt. paid till due date of filing of return is also deducted

Int. u/s 234A is to be paid @ tax mentioned asstt. order to the date of filling of return

Only amt. changed {that to rounded off to multiple of 100 (lowest)} not period.

actaully, adjustment of self assessment tax paid shall be made first against Int due i.e. 2750+20000+19250, and then balance shall be adjusted against tax liability, now, the short amount will be equal to that int amount, and so that amount is NOT INTEREST but it is a DUE TAX, and hence int @ 1 % shall be payable on that amount which although equal to int BUT NOT INTEREST...

I hope you have got my point...

No int. is payable on 2750 + 20,000 + 19250 

Agree with Arvind

Self asstt. se  int. portion (-) hoga

Originally posted by : Arvind
	actaully, adjustment of self assessment tax paid shall be made first against Int due i.e. 2750+20000+19250, and then balance shall be adjusted against tax liability, now, the short amount will be equal to that int amount, and so that amount is NOT INTEREST but it is a DUE TAX, and hence int @ 1 % shall be payable on that amount which although equal to int BUT NOT INTEREST... I hope you have got my point...

I think I did get your point Arvind. Many thanks- just a small clarification.

2750+20,000+19250 becomes due tax- so the interest for 1% for 24 months comes under 234B then? Which would be Ten thousand and eighty.

Let me again clear you Dear Sweety

Tax Payable                 275000

Int u/s 234A                   2750

u/s 234B                       20000

u/s 234C                      19250

Total                             2792000

Self Assessment Tax Paid      2750000

Now the appropriation of Self Assessment Tax Paid shall be as below:-

Rs. 2750 for Int u/s 234A

Rs. 20000 for Int u/s 234B

Rs. 19250 Int u/s 234C

Balance Rs, 2708000 shall be appropriate toward Tax Liability of Rs. 2750000, and hence short tax paid will be Rs. 42000 (2750+20000+19250)

Hence, interest @ 1% shall be payable on Tax Payable which is Rs. 42000

No interest u/s 234c is payable

finally int. on 42000 is payable from the due date of filing return till date of actually filling of return

u/s 234A

@  Arvind

Is your ans . based upon any case law?-

no.. it is contain in the Act., Explanation to Sec 140A...

yes I remember!

Dear All,

If a Company was incorporated in August, whether it will be pay interest under section 234C for non-payment of advance tax for the first quarter when it was not even in existence.

Would be greatful to the members if I could get some CBDT circular, notification etc on the relevant issue.

Thanks.

Vivek