Penalty calculation for advance tax payment

Tax queries 453 views 4 replies

GANESH RAJAN

Software Consultant

32 Points Posted on 04 March 2014

I am software professional doing freelancing in India. My auditor has told me to pay approximately 5Lac as advance tax before March 15th

But I am having difficulties in paying that amount, before March 15th. I can pay it in next 3 months

If I pay the remaining taxes in 3 month, what will be total amount I need to pay- How do I calculate this amount?

I am in a hurry to get this amount calculated, can anyone help me?

Regards

Ganesh

Replies (4)

Vibhor

Student

25 Points Posted on 04 March 2014

Sir, If you pay entire tax of 500000 by 31st May, 2014 and you have not paid any advance tax in year 2013-2014 then you will be charged interest of rs 28500. Remember 1 thing... If you pay this tax even 1 day more late i.e by 1st june,14 you will be charged another 5000 as interest coz interest rate is 1% for 1 month or part of a month i.e 1 day or 1 month are termed as equal for calculation.

Vibhor

Student

25 Points Posted on 04 March 2014

You will be charged under 2 sec of Income Tax Act, 1961 i.e Sec 234C and Sec 234B Interest U/S 234C is charged from 1 aug to 31st march & U/S 234B is charged from 1st april to date of payment of tax.

Vibhor

Student

25 Points Posted on 04 March 2014

Amount of 28500 is calculated on the basis that your actual tax liability in Previous Year 2013-2014 is 500000 itself.. Tax amount will increase/decrease accrodingly.

GANESH RAJAN

Software Consultant

32 Points Posted on 04 March 2014

Originally posted by : Vibhor
	Amount of 28500 is calculated on the basis that your actual tax liability in Previous Year 2013-2014 is 500000 itself.. Tax amount will increase/decrease accrodingly.

Thanks a lot Vibhor. As per my 26AS, already 6Lac has been deducted as TDS, this is over and above the already deducted amount, so my tax liability for 2013-14 is 11Lac

Considering this, what will be the penalty, say if pay the dues by June 2014?

Also, paying penalty- will it have any other impact?

Regards

Ganesh