ADVANCE TAX U/S 44AD

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

20 July 2011 SIR,
one of my assessee self assessment tax computed rs. 19500, in which no advance tax paid.
sir iam filing his 4-s return near about 9 % profit. Can i exempt his interest(u/s 234) ?

CA Navin Jain

CA Navin Jain (Expert)
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20 July 2011 In the new provisions, the assessee is made further exempt from the requirement of
payment of advance-tax. Thus, assessee will not be liable for interest u/s. 234B and 234C.

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Amol Gopal Kabra (CA,CS,DISA)

Amol Gopal Kabra (CA,CS,DISA) (Expert)
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20 July 2011 In case of an assessee opting for 44AD, then he need not pay advance tax and the provisions relating to interest on late payment and shortfall in advance tax namely 234C and 234B shall not be applicable.

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Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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20 July 2011 No need to pay advance tax by virtue of section 44AD (4). Hence interest provisions under section 234B and C does not arise.

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Nitin Lakhmani

Nitin Lakhmani (Expert)
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20 July 2011 No, Interest need not to be paid on that assessed tax.
234A is applicable only in case the assessee furnishes the return after the due date.

You can reduce the amount the amount of tax by reducing a profit to 8% or even slight more.. up to 08.25%.

So it will cause to Reduction in tax liability if you wish.

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Amol Gopal Kabra (CA,CS,DISA)

Amol Gopal Kabra (CA,CS,DISA) (Expert)
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20 July 2011 @ Nitin Lakhmani - Please refer the new Section 44AD that comes into effect from A.Y.2011-2012. The assessee need not pay advance tax and hence interest thereon shall not be applicable. Only 234A is applicable in case the assessee furnishes the return after the due date.

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Querist : Anonymous

Querist : Anonymous (Querist)

20 July 2011 thanks all..... :))

Querist : Anonymous

Querist : Anonymous (Querist)

20 July 2011 @ amol sir: nitin sir also confirming the same about interst that no need to pay advance tax and he advising to reduce profit to reduce tax liability.

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Amol Gopal Kabra (CA,CS,DISA)

Amol Gopal Kabra (CA,CS,DISA) (Expert)
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20 July 2011 Nitin has changed his view and modified his answer after my comment. Regarding reducing the tax liability, I think it is your personal concern and I won't advice or suggest about it. What I think is if you are having that profit then pay tax and relax. Whay are you trying to save handful of bucks.

Querist : Anonymous

Querist : Anonymous (Querist)

21 July 2011 k amol sir.....