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When 234 b & 234 c get attracted?

yelchuri udaya kumar (Chartered Accountant) (91 Points)

08 June 2012

Hi Folks,

Can anybody please clarify when interest U/S 234 B& C get attracted?

To be more specific whether under the bellow case interest is payable or not U/S 234 B&C...

Total Tax Payable is Rs.13000 (FY 2011-12, Male, Bellow 60 Yrs)

TDS Deducted is: Rs.7000 (During FY 2011-12)

After 31st Mar 12, Remaining Tax (Rs.6000) is paid as Self Assessment Tax...

Please provide your suggestions to the bellow mail id: yudaykumar86 @ gmail.com

Regards,

Uday

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2 Replies

Sanket (!..Live to Give..!) (16427 Points)
Replied 08 June 2012

Interest u/s 234B would be leviable on the assessed tax in terms of the regular assessment made u/s 147 as per the explanation 2 to section 234B. But the interest u/s 234C is not leviable as the same is levied on shortfall of tax on RETURNED INCOME only not on assessed income.

yelchuri udaya kumar (Chartered Accountant) (91 Points)
Replied 09 June 2012

Hi sanket,

Thanks for your reply..

But when I googled it, in some of the blogs the following note is mentioned.

"No advance tax is payable if the total tax liability after reducing the tax deducted at source is less than Rs. 10,000/-"

So If the above statement is having validity, then in the mentioned scenario the person is not liable to pay Advance Tax (since his tax liability is Rs.6000 which is less than Rs.10000) there by not get effected by 234 B& C.

Pls Clarify.

Regards,

Uday