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calculation of U/s 234C Intrest

mokind sawant (Accountant) (253 Points)

14 July 2009

I did not understand , how i calculate the advance tax for a. y 2009 - 2010

can any tell me slab or Percentage?

thanks & regards

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211. [(1) Advance tax on the current income calculated in the manner laid down in section 209 shall be payable by-

(a) all the companies, who are liable to pay the same, in four instalments during each financial year and the due date of each instalment and the amount of such instalment shall be as specified in Table I below :

Table I

	Due date of instalment	Amount payable
	On or before the 15th June	Not less than fifteen per cent of such advance tax.
	On or before the 15th September	Not less than forty-five per cent of such advance tax, as reduced by the amount, if any, paid in the earlier instalment.
	On or before the 15th December	Not less than seventy-five per cent of such advance tax, as reduced by the amount or amounts, if any, paid in the earlier instalment or instalments.
	On or before the 15th March	The whole amount of such advance tax as reduced by the amount or amounts, if any, paid in the earlier instalment or instalments;

(b) all the assessees (other than companies), who are liable to pay the same, in three instalments during each financial year and the due date of each instalment and the amount of such instalment shall be as specified in Table II below :

Table II

	Due date of instalment	Amount payable
	On or before the 15th September	Not less than thirty per cent of such advance tax.
	On or before the 15th December	Not less than sixty per cent of such advance tax, as reduced by the amount, if any, paid in the earlier instalment.
	On or before the 15th March	The whole amount of such advance tax as reduced by the amount or amounts, if any, paid in the earlier instalment or instalments :

Provided that any amount paid by way of advance tax on or before the 31st day of March shall also be treated as advance tax paid during the financial year ending on that day for all the purposes of this Act.]

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Balaji R K (Salaried) (158 Points)
Replied 15 July 2009

Hi,

An example of 234C Interest payable in case of an individual.

Interest is payable on Assessed tax. Assessed tax means the tax payable after giving effect to Surcharge (if any), Education Cess, Seconday and Higher Education Cess less TDS and Advance tax.

Example attached as well for your reference

Taxable Income	299,000

Tax due there on	14,900
Surcharge	Nil
EC & SHC @ 3%	447

Tax & EC Payable	15,347

Less : TDS	5,000
Advance Tax	2,000

Balance Tax Payable	8,347

Interest U/s 234C	309

Net Tax Payable	8,656

Interest Calculation for Individual & HUF

30% of 8347 @ rate of 1% multiplied by 3 months	75	Sep 08 to Nov 08 - 30% should have been paid on 15th Sep
60% of 8347 @ rate of 1% multiplied by 3 months	150	Dec 08 to Feb 09 - 60% should have been paid on 15th Dec
8347 @ rate of 1% for full year	83	Mar 09 - Minimum 90% should have been paid on 15th Mar

Total Interest Payable U/s 234C	309

Interest Calculation for Corporates

15% of 8347 @ rate of 1% multiplied by 3 months	38	Apr 08 to Jun 08 - 45% should have been paid on 15th Jun
45% of 8347 @ rate of 1% multiplied by 3 months	113	Sep 08 to Nov 08 - 45% should have been paid on 15th Sep
75% of 8347 @ rate of 1% multiplied by 3 months	188	Dec 08 to Feb 09 - 75% should have been paid on 15th Dec
8347 @ rate of 1% for full year	83	Mar 09 - Minimum 90% should have been paid on 15th Mar

Total Interest Payable U/s 234C	422

Attached File : 22 234c calculation.xls downloaded: 472 times

Anumanchipalli Sathikonda (Tax Consultant) (1559 Points)
Replied 15 July 2009

Mr.Mokind Sawant

and

Mr.Tinku

While calculating interest the sum on which we have to calculate interest has to be rounded off to the nearest hundred rupees by ingnoring the last two digits. If we have to calculate interest on Rs.1,25,135/- we have to round offf the sum to Rs.1,25,100/- only as per the provisions of Rule 119A of Income-tax Rules, 1962.

Best Wishes

Sathikonda