Interest Calculation

This query is : Resolved

Prashant (Querist)
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30 October 2009 I wanted to calculate interest u/s 234 c. So just let me know whether it shud be calculated as follows or what:

Tax payable
less :- Tds paid
Net tax payable

u/s 234/c

Net tax payable
Int @ 1% p.m. for delayed months

Please revert asap

Satpal Singh

Satpal Singh (Expert)
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30 October 2009 Yes you are correct

chetan soni

chetan soni (Expert)
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30 October 2009 Lets take an example.

Total tax liability 15000.00
TDS 5000.00

So tax payable 10000.00

Interest u/s 234C
Ist Adv tax Inst.(15-Sept) 30% of tax payable was 3K Int. @ 3% Rs.90
IInd Inst (15-Dec) 60% of tax payable was 3K Int. @ 3% Rs.180
IIIrd Inst. 100% (15-Mar) of tax payable was 10K Int. @ 1% Rs.100

Total Interest 370.00

Total SA tax payable 10370.00

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