20 March 2014
234A interest shall be calculated for the late filing of income tax return(means not filed return of income u/s 139(1) due date): According to this section an assessee is liable to pay interest @1% p.m or part of the month on the self assessment tax payable at the time of filing of return of income if he failed to file his return of income with in due date u/s 139(1). The period of interest shall be from the immediate first day after completion of due date u/s 139(1) to till the date of return filling.
234B interest shall be calculated for the insufficient ADVANCE TAX PAYMENT: According to this section an assessee who is liable to payment of advance tax and he failed to pay at-least 90% of his total tax liability as advance tax by the end of the previous year(31St march of Concern Financial year return filing) is required to pay interest @1% p.m or part of the month on self assessment tax payment liability from 1st April to date of return filing.
234C interest shall be calculated for the non payment of advance tax or short payment of advance tax with in the due dates specified to pay advance tax and prescribed installment: According to this section an assessee who is liable to payment of advance tax but he filed to pay advance tax or short paid advance tax with in the due dates prescribed is required to pay interest @1% p.m or part of the month on the short payment of advance tax as on the due date prescribed for the installment amount till the date actual payment of advance or upto the end of the financial year(31st March) which is earlier.
For the purpose of section 234C the due dates and installment of advance tax required pay is prescribed as below
For Non-corporate assessee:
15Th September 30% of total tax liability 15Th December 60% of total tax liability 15Th March 100% of total tax liability
For corporate assessee:
15Th June 15% of total tax liability 15Th September 45% of total tax liability 15Th December 75% of total tax liability 15Th March 100% of total tax liabiltiy
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