Interest 234b & c

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

05 April 2012 if firm has to pay around 60000/- income tax if they don't pay advance tax before 31st march'2012. how much interest u/s 234B & C application

what to do to save that interest ?

do i deposit now instantly to save interest ?

thanks in advance

swasti

swasti (Expert)
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05 April 2012 Since you have mentioned only tax amount and hereby it is not clear that whether it is net off any advance tax paid earlier / TDS.
Intt. u/s 234-B would be 1% p.m. from 01/04/2012 till you pay. Intt. u/s 234-C works out to Rs. 2220/-. The calculation is made assuming that there is no TDS/ no advance tax paid. Also it is to be mentioned that you can reduce the quantum of intt. u/s 234-B by paying early. Intt. u/s 234-C remains constant.

CA Prashant Gupta

CA Prashant Gupta (Expert)
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05 April 2012 Agree with the expert. To save the interest u/s 234B, should deposit tax amount as self assessment tax now. Interest U/s 234C, you cannot save now.

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CA Kishore Tallam

CA Kishore Tallam (Expert)
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05 April 2012 Agree with Swasti and Prashant.
However, before making payment, check what is the rate of interest, the company is obtaining funds. If it is more than income tax interest, better to delay payment of tax now and pay at the time of filing return.
This can be effective way of saving interest.

Querist : Anonymous

Querist : Anonymous (Querist)

05 April 2012 now what can i do ?

do i need to pay Rs. 60000/- as self assessment tax & Rs. 2220/- as interest

because finalization of account is still running & Tax audit is also application

CA Kishore Tallam

CA Kishore Tallam (Expert)
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05 April 2012 Pay the amount if u want to avoid audit observation else u can pay as suggested earlier.