Provisions of Section 234C for companies
This Section is for levying Interest for late payment of Advance Tax by assessee.I am writing on this bcoz it came in November 2012 exams,but some of my friends were not aware of that fully.
- This proviso is applicable only on companies.
- It is a kind of benefit given to company assessee.
- Below table is an attempt to show the provisions
|
Advance tax paid by company on or before |
Less than below % of “tax due ” |
Whether Interest u/s 234C is payable ? |
|
15th June |
12% |
Yes |
|
15th September |
36% |
Yes |
|
15th December |
75% |
Yes |
|
15th March |
100% |
Yes |
- Above interest is payable as per normal provisions i.e no relief to companies ,if advance tax paid is less than percentage given in column 2.For ex.
For due date 15th June-15% of tax must be deposited before 15th june. If tax deposited is less than 12%, then:-
Interest u/s 234 C = {15% of tax due -Advance Tax paid till 15th June} X 3months X 1%
Same calculation is for remaining due dates.
- “Tax due” means tax due on income disclosed in ROI i.e
|
Tax on Income disclosed in ROI |
XXXX |
|
Less: Relief of Sec 90,90 A,91 |
XXXX |
|
Less: MAT Credit u/s 115 JAA |
XXXX |
|
Less: TDS/TCS |
XXXX |
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