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Interest calculation

pyush (Student CA Final ) (81 Points)

19 August 2015

DearWhen my taxable income of Ass Year 2015-16 is ₹ 4,23,240 and tax yet to be paid. Then how much tax payable till date including interest. How i calculate interest amount.

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5 Replies

Kiran. S (CTO) (745 Points)
Replied 19 August 2015

I suggest you fill ITR1 in all respects. Click Calculate tax. you will get the Tax with interest under 234A,B and C pay around 100 or 150 more. Refunds below 100 will not given.

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S. Shiroor (Others) (1207 Points)
Replied 20 August 2015

You should do what mr kiran had told. Only thing is you will have to fill the IT sheet [advance/self assesment column ] with some ficticious fig.

1] Taxable Income is 423420 ,

2] Tax payable is (423420- 250000) *0.1 =17342

3] less max rebate of Rs 2000 under 87A so 17342 -2000 =15342

4] add 3% edu cess so 15342*0.03 =460

5] Total tax payable w/o int = 15802

6] Add int of 1.5% per month since amt greater than 10000.

7] Add some fig in adv rax/ self assesment tax say 17500

8] click Calculate tax - if less increase the fig in self assesment tax sheet untill you get refund of rs 150-200.

I hope i am correct

ThakurAnshdeepSingh (student) (92 Points)
Replied 21 August 2015

It's AY 15-16 therefore PY 14-15 and last date of return is 31 Aug. Why interest has to be paid sir?

S. Shiroor (Others) (1207 Points)
Replied 21 August 2015

Advance tax for person other than companies is payable if tax due in a financial year is more than 10000 before the TDS amount .Such person have to pay advance tax in three installments.

30% of tax assessed =15 September of previous year(for Ay 2015-16date is 15.09.2014)
60% of tax assessed=15 December of previous year ( For Ay 2015-16 Date is 15.12.2014
100% of tax assessed = 15 March of previous year (For Ay 2015-16 date is 15.03.2015)

Here tax Assessed means = Tax due minus Tax deducted at sources.Please note that to check 10000 cut off limit you have to consider full amount of tax due but for interest calculation amount is to be taken is total tax due minus tax deducted/ collected at source(TDS/TCS).

If you have not paid your tax pro-rata bases in advance as shown above you have to pay interest u/s 234C .

Further If you have not paid your full taxes by 31.03.2015 for Ay 2015-16 then you have pay interest under section 234B on balance amount of tax .

Interest U/s 234A is payable only if you miss the Income tax due date for Ay 2015-16 of 31.08.2015

Thakur Singh is that clear enough.