Advance tax

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My husband's TDS was not deducted correctly as previous salary income was not considered in AY 2011-12. The return was also not filed before 31st July 2011.

We uploaded return using ITR4 on 23 March. As TDS deducted was less, and there was tax balance interest was charged. It was charged (calculated by excel sheet) under each of following heads. We used ITR4 to report FNO losses.

 8 Interest payable      
 a For default in furnishing the return (section 234A)  9a 
 b For default in payment of advance tax (section 234B)   9b
 c For deferment of advance tax (section 234C)    9c

I didnt understand why the advance tax related interest was charged. Can anyone please elucidate to me?

Many thanks,

Gayatri

Replies (5)

If the total tax credit (TDS + Advance Tax, if any) is less than 90% of your total tax liability, then yinterest u/s 234B will be levied.

Originally posted by : Sonam Bidasaria

If the total tax credit (TDS + Advance Tax, if any) is less than 90% of your total tax liability, then yinterest u/s 234B will be levied.

Okay so basically here "advance tax" under the "Interest payable" head refers to TDS as well as Advance Tax. Yes, his TDS is less than 90% of TTL, as new company didnt consider almost 5 months previous salary income.

Just FYI, I was worried if IT was expecting Advance Tax for FNO investing. So my query.

Best Regards!

In my views where income of the assessee is liable to tds and tds was not deducted by the payer of income (like salary and intt) then no interest is payable on the income which is earned through same channal other income will be liable to intt on tax

Advance tax is requird to be paid if the total tax payable after deduction of TDS is less than 90% of the total tax payable.  Hre TDS should not be considered.

In your case, as the TDS made was less, so the advance tax was required to be paid.  So as advance tax was not being paid interest u/s 234B & 234c is being levied while calculating your tax payable.  Interest u/s 234A is being , levied becaseu the retyrn was not filed withing the due date of filing the return of Income.

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