HOW TO CALCULATE INTEREST U/S-234A,B,C.......
PLS SHOW WITH EXAMPLE
THANKS IN ADVANCE
HOW TO CALCULATE INTEREST U/S-234A,B,C.......
PLS SHOW WITH EXAMPLE
THANKS IN ADVANCE
Sunil Liladhar Kotak
(Manager (F & A))
(2025 Points)
Replied 29 September 2009
Please visit the Share files section. u will get the required details
Thanks
Sunil
kapil kumar agrawal
(Chartered Accountant )
(169 Points)
Replied 29 September 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)
Replied 29 September 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. |
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)
Replied 30 September 2009
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....!!!!!!!!!!!
GST Live Certification Course (39th Batch) - April 2024 (Weekend Batch) (With Certificate)
"Live class on Python for Financial Analysis: Unlocking Efficiency in Accounting and Finance"