Interest u/s 234(b)

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

10 July 2014 My Advance tax liability is 225000.

i pay 135000 as an advance tax.
so that 243(b) shortfall is(225000-135000)=90000

interest u/s 234(b)=900000*4%(Apr-jul)=3600

but if i pay the rest tax of 90000
on 20/4/2014 than what is amt. of interest???

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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10 July 2014 Sec 234B relates to the interest payable on the short payment of Advance Tax. if any assessee fails to pay the 90% of its assessed tax by 31st of March of the previous year to which such liability relates shall pay the above interest on the shortfall from the 1st day of AY to till the payment of Tax.

So if you pay the balance tax on 20.04.14 then you have to pay interest @1% for 1 month on Rs 90000/-