Income tax on salary

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

25 October 2012 My tax on salary comes to Rs. 39000. As my employer has not deducted tds, I am liable to pay the tax for the F.Y year 2011-12. Till date i have not paid any tax. Can any body tell whether how much interest will be charged and under which section.

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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25 October 2012 Interest will be paid under section 234A/B/C as follows

Section 234A
Where the return of income for any Assessment year is furnished after the due date specified in section 139(1) or is not furnished the assessee shall be liable to pay simple Interest @ 1% for every month or part of a month.

Section 234B

Where in any financial year, an assessee who is liable to pay advance tax u/s. 208 has failed to pay such tax or the advance tax paid by such assessee is less than 90% of the assessed tax, the assessee shall be liable to pay simple interest @ 1% for every month or part of a month.

Section 234C

n the case of companies calculation of interest u/s. 234C shall be as follows: Where the advance tax paid by the company on its current income on or before 15th June, 15th September, 15th December is less than 15%, 45% and 75% respectively on the returned income, then the company shall be liable to pay simple interest at the rate of 1% per month for a period of three months on the amount of the shortfall. However, in the case of company assessee, leverage has been provided as to the first 2 installments, falling due on 15th June & 15th September. A concessional rate of 12% and 36% has been provided as against 15% and 45% respectively. In case the companies does not pay even 12% or 36% as the case may be, interest u/s. 234C shall be levied on the entire sum of advance tax payable based on 15% and 45% for the respective installments of 15th June and 15th September.