Interest 234a 234b 234c

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Querist : Anonymous

Querist : Anonymous (Querist)

13 September 2011 Sir,
How to calculate Interest on Income Tax u/s 234A 234B 234C. Kindly give reply

Hari Beldona

Hari Beldona (Expert)
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13 September 2011 https://public.sheet.zoho.com/public/guptrajin2002/234abc

Please try the above link.

Dintakurthi Tirumala

Dintakurthi Tirumala (Expert)
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13 September 2011 U/S 234A: interest has to be pay for the delay of filling of return(i.e.filling after the due date) @1% per month or part of the month on the balance tax amount payable i.e self assessment tax payable upto the date of filling of return.

U/S 234B: interest has to be pay for advance tax paid less than 90% of the total advance tax payable upto 31st march. i.e in the case where the advance tax paid is less than 90% of total advance tax payable upto the financial year ending (i.e. by March 31st)this section will be applicable. Interest rate is 1% per month or part of the month on the balance tax payable as on 31st march upto the date of filling of return.

U/S 234C: interest has to be pay if the default in payment of advance taxes according to the due dates or advance tax paid but not sufficient to the requirement. As per this section whose tax paid immediately presiding year to the current year is Rs.10000(from A.Y.2011-12) is required to pay advance tax as per the following slabs and due dates.
for other than companies:
30% as on 15th september
60% as on 15th december
100% as on 15th march
for companies:
45% as on 15th june
60% as on 15th september
75% as on 15th december
100% as on 15th march.
if the payment of advance tax is not according to the above slabs than interest @1% per month or part of the month has to be pay for the delay period.
for example: let assume an individual has to pay total advance tax of Rs.20000 for F.y.2010-11. in his case he paid advance tax as follows.
by 15th september Rs.5000
by 30th september Rs.1000
as per section 234C advance tax of 30% has to pay upto 15th september but in our example he paid Rs.5000 only(less than 30%) and balance Rs.1000(required 30%) paid on 30th september so he has to pay interest @1% on Rs.1000 per one month i.e Rs.10.
NOTE: section 234B and 234C will be attracted only in the case who has to pay advance tax liability(i.e whose tax payable is more than Rs.10000 from A.Y.2011-12). However from A.Y.2011-12 who offers their income under section 44AD and 44AE need not to pay advance tax eventhough their tax payable is more than Rs.10000
I think you are understanding the above if you not please refer Incometax recnor or your incometax book(in case you are student) you can understand very much with huge exemples. Thank you
OM SAI SRI SAI JAI JAI SAI

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Querist : Anonymous

Querist : Anonymous (Querist)

13 September 2011 I AM VERY THANKFUL TO YOU BOTH