31 March 2009
Interest u/s 234B is for short payment of Advance Tax as compared to Assessed Tax. Interest is chargeable from 1st April till the date of passing of assesment order. Interest is payable on amount by which Advance tax falls short of Assessed Tax.
Interest u/s 234B is for deferment of Advance tax installment. Interest is payable for 3 months on the amount by which Advance tax installment fall short by 15%, 45%, 75% and 100% of the tax as per return.
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