Penalty on Outstanding Taxes

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

21 June 2010 Dear Sirs,

For Individuals:

1) The 1% monthly penalty for outstanding taxes payable is calculated as per simple interest or compound interest basis?

2) The number of months is calculated from the end of July or March?

Please let me know.

Balaiah

daya shankar singh

daya shankar singh (Expert)
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21 June 2010 U want to know about penalty or interest. penalty is levy under section u/s 271(1)(c) min. 100% or max. 300% of tax liability and interest would be chargeable u/s 234A/B/C @ 1%p.m. accordingly under each section