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234c interest

A G Vishal Kirthic (Chartered Accoutant) (236 Points)

17 August 2011

Hi all,

My client has issued cheque for remittance of advance tax on 15th Sep but the same got realised only on 17th. Please clarify whether interest u/s 234C will be attracted in this case.

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11 Replies

CS,CA F,Numrologi TusharSampat (CS CA F Numerologist Astrologer Graphologist Face reader Vastu Expert) (85930 Points)
Replied 17 August 2011

No.......

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A G Vishal Kirthic (Chartered Accoutant) (236 Points)
Replied 17 August 2011

Sir,

Is there any circular to that effect?

CA Himanshu Khurana (Chartered Accountant) (813 Points)
Replied 17 August 2011

if u deposited cheqe on 15th september no interest u/s 234C applicable. wheter cheque realised on any date.

CA ADITYA SHARMA (CA IN PRACTICE ) (16719 Points)
Replied 17 August 2011

Originally posted by : himanshu
	if u deposited cheqe on 15th september no interest u/s 234C applicable. wheter cheque realised on any date.

agreed

CA Aditya Modi (Associate Manager) (159 Points)
Replied 17 August 2011

date of presentation of cheque is important and not the date on which the cheque is deposited into the bank for clearance.

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valji (Accounts manager-MBA) (2150 Points)
Replied 17 August 2011

agree with above

CA YOGESH GARG GMG PLYWOODS (BUSINESS OF PLYWOOD and PARTNER IN GUPTA & MALHOTRA CHARTERED ACCOUNTANTS) (248 Points)
Replied 17 August 2011

date of presentation of cheque is important and not the date on which the cheque is cleared..date will b taken as 15Sept..so donot worry dear

CA Rohit Dhingra (Job) (50 Points)
Replied 17 August 2011

agree with above

CA JOGESH KUMAR GOYAL (Indirect Taxation) (96 Points)
Replied 17 August 2011

Last date of depositing is 15 Sept. subject to realistion of cheque. If u have deposited ur cheque on or before 15th and it got realised then no any penalty should be levied on you but in case if cheque not got realised then penalty should be levied.

NEERAJ KUMAR (CA FINAL) (78 Points)
Replied 18 August 2011

Dear VIshal Kirthic,

There is no obligation of Interest u/s 234C on the assessee for Advance Tax Instalment paid through cheque on 15th June, 15th Sep, 15th Dec & 15th March (i.e. presentation date) and there is no matter that cheque cleared after due date, if it is not dishonoured.

It is also decided by the supreme court in the Case of:-

CIT V Ogale Glass Works Ltd. (1954) 25 ITR 529 (SC)

It is also decided by the High Court in the Case of:-

K.Venkata Reddy V CIT (2001) 250 ITR 147 (AP)

with thanks & regards

Neeraj Kumar