Interest u/s 234A,B & C

A.Y.2009-10 (SALARIED EMPLOYEE)
TAX PAYABLE 48948
TDS:26301
ADVANCE TAX: NIL

IF HE FILES HIS RETURN TODAY WT WILL BE THE INTEREST CALCULATION U/S 234A,B,C

Replies (5)

234A--------August to May= 10 months

Int @ 1%on (48948-26301) = Rs 2267(r.off)

 

234B-------1st April 09 till date= 14 months

int @ 1%= 3171

 

234C------ Simply apply the slabs and 3% (and 1%) rates 

AMITKK IS RIGHT

In case of TDS on Salary normally company deduct full tax liability as TDS on average basis. But in this case if company has not deducted TDS properly then the above mention interest calculation is correct.

Interest workings are correct.

But, we got to keep one thing in mind here.

 

If he has only Salary Income and the shortfall is due to the fault of the employer, i.e., he has not deducted properly, then

 

Your client need not pay any interest. It is the duty of the employer to deduct tax in case of salaries and as penal proceedings u/s 201 are available, you cannot claim interest from the employee.

 

On the other hand the shortfall is due to the other INcome of the client which he has not disclosed to his employer, then, the liability is with the Employeee, hence, interest is payable.

 

Shiva

Shiva is perfect.

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