Section 234b & 234c

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

14 April 2015 Dear expert
if the assessed tax is RS. 10000. and only 2000 advance tax was paid on 15/9/2014. please tell me which section it will falls and how much interest have to pay if the assessee is individual.

plz reply..

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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14 April 2015 Interest U/s 234B depends upon the date of payment. If you pay tax in this month only, interest U/s 234B is payable for 1 month @ 1% pm on 8000, which comes to Rs.80.
.
Interest U/s 234C is also payable.
It is payable for shortfall in advance tax and total interest payable U/s 234C will be Rs 230.
.

Querist : Anonymous

Querist : Anonymous (Querist)

15 April 2015 Dear paras sir
as you have replied above interest u/s 234B is to be 80 and interest u/s 234C is to be 230, actually i couldn't understand your reply that why both section interest will be applicable and how you have calculated it. plz reply in details......

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CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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15 April 2015 234B- levied for Non-payment/Short Payment of Advance Tax.
.
234C- levied for deferment of advance tax installments.
.
For understanding the calculation you may refer-
http://taxguru.in/income-tax/section-234a-234b-234c-income-tax-act-1961.html