query on Advance Tax

Tax planning 272 views 7 replies

SUYASH KORDE

Student

136 Points Joined March 2009

as per income tax act if total tax exceeds Rs. 10000, you have to pay Advance tax if TDS is not there...my query is if i have total tax liability of Rs.125000 and full amount instead of paying in advance tax payment date i.e. 4 times in year... if I pay this on last installment date i.e. on 15th March.. than is there any interest u/s 234b and 234c..

Replies (7)

Kuldipsinh Jadeja

Job

357 Points Joined April 2012

If you pay 90% of your total tax payable after TDS on or before 31st March you can avoid interest u/s 234B. However interest u/s 234C would be levied for deferment of advance tax

subhash kumar jha

PROFESSION

445 Points Joined August 2012

234C will be levied for deferrement of tax

SUYASH KORDE

Student

136 Points Joined March 2009

if i pay 100% of tax to be paid.. than ..234C is applicable or not...

Kuldipsinh Jadeja

Job

357 Points Joined April 2012

234C would be applicable even though you pay 100% amount only on last installment date i.e.15th March.

Louza

Finance Specialist

28 Points Joined January 2016

Yes 234B and C will apply in this case on the total tax payable since no advance tax was paid during the relevant previous year.234A is interest on delayed filing.

DILEEP KUMAR.A

Executive Finance

475 Points Joined February 2012

Dear Suyash,

234A: Appiles for default of furnishing ROI

234B : Appiles for default of payment of Advance Tax, which is less than 90% of tax liability by 31.03.20XX

234C: Appiles for default of not fulfilling the crieria of certian % of amount during the Quarter ends.

Tax planning here is,

If you have not paid Adv tax at all in any of the due dates as mentioned in 234C, still you can completely avoid 234B & 234A by paying it atleast on 31.03.20XX. However 234C is unavoidable.