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234a, 234b and 234c

CMA. CS. Sanjay Gupta ("PROUD TO BE AN INDIAN") (114225 Points)

13 December 2011

PPT ON 234A, 234B AND 234C

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7 Replies

Sanket (!..Live to Give..!) (16427 Points)
Replied 13 December 2011

Here I am atttaching a file to calculate Interest on 234A 234B &234C..

Hope it usefull to all....

Attached File : 479918 884944 calculation of interest under sec 234a 234b and 234c.xls downloaded: 526 times

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Vandana Mulchandani (Finance Manager ) (9227 Points)
Replied 13 December 2011

THANK YOU SANJAY BHAIYA FOR THE PPT EXPLANING IN VERY SIMPLE WORDS.....CONTINUE SHARING.

THANK YOU TO SANKET ALSO FOR ADDING VALUE BY SHARING THE INTEREST CALCULATOR....CONTINUE SHARING

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RATNESH (student) (29 Points)
Replied 13 December 2011

thnx sir 4 dis gud thought...

Vaibhav (software engineer) (28 Points)
Replied 15 December 2011

Thanks for sharing the PPT and the calculator.

I have few doubts Sanjay on the PPT. In the 3rd page of PPT under 234B interest, you mentioned - 234B is payable if advance tax paid is less than 90% of the assessed tax. I was not clear about the definition of assessed tax, is it = total income tax liability - TDS.

That also means that even if TDS paid is more than 90% of the total income tax liability, interest under 234B is still applicable if there is a shortfall in the payment of advance tax. Is that correct ?

Thanks again.

CMA. CS. Sanjay Gupta ("PROUD TO BE AN INDIAN") (114225 Points)
Replied 15 December 2011

@ Vaibhav--

1) Assessed tax mean actual tax liability.

2) TDS is also a sort of advance tax, so if TDS deducted from you is 90% or more Sec 234B will not be applicable. Also appreciate advance tax to be paid is calculated after considering the TDS already deducted from you.

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Vaibhav (software engineer) (28 Points)
Replied 15 December 2011

Thanks Sanjay for the clarification.

The reason I asked because recently I got a demand from the IT dept to pay interest u/s 234B for AY 11-12 even though TDS deducted was more than 90% of my total income tax liability. I hadn't paid any advance tax (other than TDS) though. Looks like IT dept miscalculated the interest u/s 234B. What do you think ?

Appreciate your help.

CMA. CS. Sanjay Gupta ("PROUD TO BE AN INDIAN") (114225 Points)
Replied 15 December 2011

Yes they do on number of occasions. Many times there calculation do not match with ours. But no problmes the same will be rectified upon submission of facts.