Payment of advance tax (section 234a,b & c)

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Mkumar

50 Points Posted on 22 August 2015

Hi,

I have changed the company in Januray 2015.I was not able to show previous income so new employer deduct tax based on my new income only and didnt consider the previous income.

Now i am filling the ITR -2 at that itme and found that my tax liablity is 22000. I have paid through challen no 280 self tax assessment.

Now it's asking for interest payable amount(as given below excel excerpt).Since last date of filling the date is 31st Aug 2015. I have read that we can igonor this amount if retrun wound be fill up before due date but some blogs says that it should be paid as i havent paid in advance.

Do i need to pay this amount ? Please reply.

Many thanks in advance!!

9	Interest payable
	a	For default in furnishing the return (section 234A)	9a	0
	b	For default in payment of advance tax (section 234B)	9b	1090
	c	For deferment of advance tax (section 234C)	9c	803
	d	Total Interest Payable (9a+9b+9c)			9d	1893

Replies (2)

S. Shiroor

Others

1212 Points Posted on 22 August 2015

Yes you need to pay the amt

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

I HOPE THIS IS CLEAR