Query reg. 234b & 234c

Others 841 views 4 replies

Yogesh Shah

Managing Corporate Finance

1051 Points Joined March 2009

Hi Guys ..

While finalizing one individual's ITR, I noticed that he didn't file his ITR for AY 2011-12 i.e. last year. After income computation, tax liability comes around Rs. 13,500/- including cess but excluding interest. Interest u/s. 234A, I have levied but im confused in 234B & 234C.

Now my question is whether Interest u/s. 234B is leviable?

since this section starts with the words 'If assessee HAS PAID Advance Tax but the amount is less than 90%'.

In my case, assessee didn't pay advance tax in last year.

Hence whether ONLY 234C interest is chargeable

OR BOTH i.e. 234B as well as 234C interest.

When I searched the same on net, I found some answers telling that both are chargeable but I don't think so. Plz suggest.

Replies (4)

Deepak Parsai

Future CA

623 Points Joined December 2008

In my opinion also, both are chargable.

CA Lalit Kandoi

Chartered accountant

1053 Points Joined January 2010

Originally posted by : Yogesh Shah
	Hi Guys .. While finalizing one individual's ITR, I noticed that he didn't file his ITR for AY 2011-12 i.e. last year. After income computation, tax liability comes around Rs. 13,500/- including cess but excluding interest. Interest u/s. 234A, I have levied but im confused in 234B & 234C. Now my question is whether Interest u/s. 234B is leviable? since this section starts with the words 'If assessee HAS PAID Advance Tax but the amount is less than 90%'. In my case, assessee didn't pay advance tax in last year. Hence whether ONLY 234C interest is chargeable OR BOTH i.e. 234B as well as 234C interest. When I searched the same on net, I found some answers telling that both are chargeable but I don't think so. Plz suggest.

First tell me how much the advance tax paid befor 31.3.2012

GOPAL AGGARWAL

DOING NOTHING

1339 Points Joined October 2009

Intt under both scetions are chargeable

but if your income is tax dedcutible i.e. interest and Salary and liability arised due to non dedcution of TDS by the payer of income. Only then u can save your interest chargeable u/s 234B & C