Interest calculation u/s 243b & 243c (advance tax)

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

08 August 2013 Hi My client did not pay 1st Installment of advance tax in September.Next 2 Installment he paid on time. I want to know that which section is applicable to calculate Interest.whether sec 243 B or 243 C. How to calculate Interest under these sections?
Please explain with example, if possible.
Its urgent.....
Thanks in advance

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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08 August 2013 After paying the advance tax in the "desired" manner the client is having no tax liability.
.
In such a situation Section 234C only will be applicable, which you have to calculate
in the following manner-
.
Total Tax liability after TDS but before deduction advance Tax Installments is say --Rs. 100000/
.
Sept Quarter payable Rs. 30000/-
.
Interest For 3 months 30000*.01*3=900.
.

Querist : Anonymous

Querist : Anonymous (Querist)

12 August 2013 Hi,
1)Client having tax liability of Rs.84261 which he has to pay(his due date is on 30th Sept).
2)Tax assessed amount is say, 534261.30% of that amt is 160278.24.Whether interest will be chargeable on 160278.24@1%*3 or 30%+60%+100% of tax assess amount.Kindly clear that point.
3)Whether sec 234B will be applicable?

I used online Interest calculator in which both section was applicable

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Ganeshbabu K

Ganeshbabu K (Expert)
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15 August 2013 Refer

https://www.caclubindia.com/articles/interest-u-s-234a-234b-and-234c-15276.asp

and if you have paid advance tax less than 90% of assessed tax 234b comes applicable

Thanks & regards
Ganesh babu k