NEED HELP-INTEREST

Tax queries 1439 views 7 replies

Guest

HOW TO CALCULATE INTEREST U/S-234A,B,C.......

PLS SHOW WITH EXAMPLE

THANKS IN ADVANCE

Replies (7)

Sunil Liladhar Kotak

Manager (F & A)

2025 Points Joined December 2008

Please visit the Share files section. u will get the required details

Thanks

Sunil

kapil kumar agrawal

Chartered Accountant

169 Points Joined August 2009

It takes a lot of matter so please check section

I want to suggest u to refer Vinod gupta's module

Thanks

CA.kaya

Chartered accountant

3990 Points Joined April 2009

Advance Payment of Income Tax For the assessment year 2009-2010.

Due dates of payment of advance Tax.
Particulars / Date	Corporate Assessee	Non-Corporate Assessee

on or before 15 June	Upto 15% of advance tax payable	NIL
on or before 15 September	Upto 45% of advance tax payable	Upto 30% of advance tax payable
on or before 15 December	Upto 75% of advance tax payable	Upto 60% of advance tax payable
on or before 15 March	Upto 100% of advance tax payable	Upto 100% of advance tax payable
Interest payable by the assessee.

Section 234A: For defults in furnishing return of Income.
If the return of income is furnished after the due date, the assessee is liable to
Pay simple interest @ 1% per month or part of month.
Section 234B: For defults in payment of advance tax.
An assessee who is liable to pay advance tax , has to failed to pay such tax than
simple interest @ 1% is Payable on assessed tax from the date on which advance
tax become due.
As assessee who is paid advance tax but the amout of advance tax paid by him is
less than 90% of assessed tax, than Simple interest @ 1% is payable on Assessed
tax minus advance tax.
Section 234C: For deferment of advance tax
Interest is payable on the under this section if the assessee has not paid the
advance tax or underestimated instalments of advance tax.Interest is computed
on the following basis.
In case of Non-corporate assessee
When Interest payable	Rate of Interest	Period of Interest	Amount on which interest is payable
On or before 15 Sep less than 30% (a-b)	Simple Interest @ 1%	3 Months	30%(a-b)-c
On or before 15 Dec less than 60% (a-b)	Simple Interest @ 1%	3 Months	60%(a-b)-d
On or before 15 Mar less than 100% (a-b)	Simple Interest @ 1%	-	100%(a-b)-e

In case of corporate assessee
When Interest payable	Rate of Interest	Period of Interest	Amount on which interest is payable
On or before 15 June less than 12% (a-b)	Simple Interest @ 1%	3 Months	15%(a-b)-c
On or before 15 Sep less than 36% (a-b)	Simple Interest @ 1%	3 Months	45%(a-b)-d
On or before 15 Dec less than 75% (a-b)	Simple Interest @ 1%	3 Months	75%(a-b)-e
On or before 15 Mar less than 100% (a-b)	Simple Interest @ 1%	-	100%(a-b)-f
Note:-
a) Tax on total income declared in the return filed by the assessee.
b) TDS or TCS.
c) Amount of advance tax on or before Jun15 of the FY.Immediately preceding the relevants AY.
d) Amount of advance tax on or before Sep15 of the FY.Immediately preceding the relevants AY.
e) Amount of advance tax on or before Dec 15 of the FY.Immediately preceding the relevants AY.
f) Amount of advance tax on or before Mar of the FY.Immediately preceding the relevants AY.

Guest

THANK U KAVYA............................Let`s take an example

1) suppose an a non corporate assessee had not paid any advance tax and his total tax liability stands out to be 10820 including surcharge,and he had paid that amt. in the month of july.what amt. he is required to pay later as interest..pls. show ur calculations.

2) I cannot understand the difference between 234B & 234C

Ashish M

Chartered Accountant

2731 Points Joined January 2008

MAJOR DIFFERENCE B/W 234B AND 234C IS THAT U/S 234B, PENALTY IS FOR PAYING ADVANCE TAX LESS THAN 90% OF THE TOTAL ADVANCE TAX PAYABLE IN THE RELEVENT PREVIOUS YR., WHERE AS U/S 234C, PENALY IS NOT PAYING THE RELEVANT %AGE OF TAX ON THE RELVANT DUE DATES DURING THE RELEVANT PREVIOUSYRS.........

AND AS FOR UR QUERY, THE ASSESSEE HASN'T PAID ANY ADVANCE TAX BUT HAS PAID ALL THE TAX BEFORE FILING RETURN N JULY........

HERE ONLY INTEREST U/S 234B AND 234C SHALL BE LEVIABLE...........

INTEREST U/S 234B IS FOR NOT PAYING ATLEAST 90% OF THE TOTAL ADVANCE TAX PAYABLE. SINCE NO ADVACE TAX IS PAYBLE IN UR CASE, THE INTEREST SHALL BE LEVIABLE FROM 1st april OF THE RELEVANT A.Y...ON THE WHOLE OF THE AMOUNT TILL u actually pay tax along with advance tax. u said assessee paid only tax. then the penaly interst shall continue to be leviable untill advance tax is paid.//

INTERST U/S 234C IS FOR NOT PAYING RELEVANT %AGE OF TAX ON RELEVANT DUE DATES OF THE P.Y. IT SHALL ALSO BE LEVIABLE AS NO ADVANCE TAX IS PAID AT ALL.. IT SHALL BE 3 % EACH FOR THE FIRST 3 QUATERS AND 1% FOR THE FORTH QUARTER..

I HOPE IT ADDED SMTHING TO UR KNOWLEDGE....!!!!!!!!!!!