Advance Tax

This query is : Resolved

Manish Raina (Querist)
Follow

13 July 2009 I changed job in september 2009 and there was no tax deduction at source as income for that period was less than 1,50,000. All my income is from salary. I also did not give those details to my current employer. The first deduction of Tax at source was in october.

To make up for my tax liabilities i paid advance tax by cheque on 28.03.2009. Will there be penal interest charged to me. Also do the dates of 15th sept, 15th dec and 15th march apply to me. As I have not met any of these deadlines

Bindu Madhav

Bindu Madhav (Expert)
Follow

13 July 2009 Sec. 234 C will be applicable in your case. If your tax liability is below Rs. 5000 then 234C won't apply. If your tax liability exceeds Rs. 5,000 then interest needs to be paid U/s. 234C

Manish Raina

Manish Raina (Querist)
Follow

14 July 2009 Bindu thank you for the reply

Can you please tell me how the rate of interest can be calculated. My Tax liability for the year is around 17,000. There was no deduction till october. and tax deduction by november was 3k

Upgrade to CAclubindia Pro. Subscribe Now!

Aditya Maheshwari

Aditya Maheshwari (Expert)
Follow

14 July 2009 Net tax liability 14,000/-
Interest
30% 14000 * 30% = 4200 * 3% = 126
60% 14000 * 60% = 8400 * 3% = 252
100% 14000 * 100% = 14000 * 3% = 140

Total liability u/s 234C = 518.

If net tax liability (Net of TDS) is 17000/- then as per above calculation interest 629