Interest u/s 234b and 234c

ITR 3454 views 2 replies

Nirmit Choraria

CA Final

1333 Points Joined August 2009

I am having a query relation to Interest u/s 234B and 234C. When Business Income is u/s 44AD there is no liabily to pay Interest u/s 234B and C " [SUB-SECTION (4) OF SECTION 44AD]".

Is this section is applicable when there is High amount of STCG and other sources of Income.

For Eg

Income from Business U/s 44AD 453044

Capital Gain 194121

Other Sources 328738

income of an female Assessee

full deduction of u/s 80 taken 100000

Tax liabily aound 99368

Tds and advance tax 14703 and 20000

So is this Assessee liable to pay interest U/s 234B and 234C..?????

Regards

Replies (2)

Tehsinkhan Pathan

CA CMA DISA(ICAI) B.COM

3956 Points Joined November 2010

SUB-SECTION (4) OF SECTION 44AD ONLY RELATES TO BUSINESS INCOME.

so for the calculation , whether the 234b/c will be applicable or not ? just do calculation in the following way

1. Calculate total income as if you have not Business income (i.e. ignoring business income - income of other four heads)

2. Deduct deduction u/s - 80c - 100000

3. Calculate your tax liability considering advance tax and TDS. (HERE NOTE THAT CREDIT FOR FULL AMOUNT OF TDS TO BE CONSIDERED WHETHER IT RELATES TO BUSINESS SPECIFIED U/S 44AD OR NOT)

4. If in step - 3 , you are laible to 234b/c then the same will be applicable.