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Advance tax

anony (MANAGER) (145 Points)

16 June 2011

DEAR SIR,

WE COULD NOT PAY OUR ADVANCE TAX INSTALLMENT YESTERDAY, IF WE PAY IT TODAY, HOW MUCH INTEREST WILL WE HAVE TO PAY (ONE DAY'S DELAY).

how much interest will i have to pay, if I make payment today.

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13 Replies

Arvind Sharma (ACA) (1432 Points)
Replied 16 June 2011

don wroy... Pay it today....

Although Int will be workout @ 1%

1 Like

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CA ADITYA SHARMA (CA IN PRACTICE ) (16719 Points)
Replied 16 June 2011

Originally posted by : Arvind
	don wroy... Pay it today.... Although Int will be workout @ 1%

agreed

CS,CA F,Numrologi TusharSampat (CS CA F Numerologist Astrologer Graphologist Face reader Vastu Expert) (85930 Points)
Replied 16 June 2011

Originally posted by : Arvind
	don wroy... Pay it today.... Although Int will be workout @ 1%

AGREED @ 1% FOR NO OF DAYS U DELAY FRM DUE DATE.

anony (MANAGER) (145 Points)
Replied 16 June 2011

but sir, 1% per month interest is to be paid for delay.

CA Suraj Prasad Shaw (Chartered Accountant) (504 Points)
Replied 16 June 2011

Agreed with above views.

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Anshul (.) (375 Points)
Replied 16 June 2011

According to sec.234B the assessee shall be liable to pay simple intrest @ 1% for every month or part of a month......

CA. Anubhav Jaggi (CA) (104 Points)
Replied 16 June 2011

No interest has to be paid at the time of payment of advance tax. Late payment of advance tax will be treated as next quater advance tax. By paying extra amount as interest, it will not be treated as first quater tax.

However, interest u/s 234 is to be paid at the time of filing return for late payment.

amitmehta_ca (CA, CMA) (99 Points)
Replied 16 June 2011

DEAR LALIT, i WOULD LIKE TO BRING TO YOUR NOTICE THE PROVISION AS STATED U/S 234C WHICH STATES THAT IN CASE ADVANCE TAX PAID FALLS SHORT THAN INTEREST NEEDS TO BE PAID @ 1% PER MONTH FOR A PERIOD OF 3 MONTHS. I WOULD SUGGEST YOU TO PLEASE PAY INTEREST FOR 3 MONTHS WITH THE ADVANCE TAX INSTALLMENT.

Mukesh Kumar Singh (CA-FINAL) (4094 Points)
Replied 16 June 2011

AGREE WITH LALIT.........

Sumit Kumar (Audit Executive) (278 Points)
Replied 16 June 2011

if there is a national holiday or suddenly holiday then u can paid tax next day without any interest.....

but in any other cases calculate simple interest @ 1%p.m or part of the month, interest is payable on assessed tax

...

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sukhpreet (study) (67 Points)
Replied 17 June 2011

Pawan Kr. Tomar (CA) (169 Points)
Replied 17 June 2011

Originally posted by : sukhpreet
	DEAR LALIT, i WOULD LIKE TO BRING TO YOUR NOTICE THE PROVISION AS STATED U/S 234C WHICH STATES THAT IN CASE ADVANCE TAX PAID FALLS SHORT THAN INTEREST NEEDS TO BE PAID @ 1% PER MONTH FOR A PERIOD OF 3 MONTHS. I WOULD SUGGEST YOU TO PLEASE PAY INTEREST FOR 3 MONTHS WITH THE ADVANCE TAX INSTALLMENT.

aggred