Dear Experts, My client sold his HP on 20/03/2012 on which he received capital gain which is taxable in A Y - 2012-13. He is an individual person getting salary and paid tax fully by the way of tds for his salary income. Is he liable to pay interest U/s 234B and C? Because he sold on the end of the year and received the income as capital gain if he sold in the beginning or the middle of the F Y we shall pay interest. What is the tax Treatment to this case? Kindly put light on it. Thanks in advance.
4 Replies
CA PARAS BAFNA
(Practising CA )
(33428 Points)
Replied 04 August 2012
In case he pays tax on 31.03.2012, he will be not liable to Interest U/s 234B & 234C. If he does not deposits tax or deposits later, he has to pay interest U/s 234C @ 1%. Interest U/s 234B will be decided as and when he makes tax payment.
CA PARAS BAFNA
(Practising CA )
(33428 Points)
Replied 04 August 2012
In case he pays tax on 31.03.2012, he will be not liable to Interest U/s 234B & 234C. If he does not deposits tax or deposits later, he has to pay interest U/s 234C @ 1%. Interest U/s 234B will be decided as and when he makes tax payment.
Member
(Management)
(325 Points)
Replied 04 August 2012
In this case, interest u/s 234C will not apply as the CG accrued after 15th March. But the whole of CG Tax will have to be paid on or before 31st March. Even a delay of one day will entail interest u/s 234B on the whole of the tax payable. The liability for 234B starts with 1st April and ends on the date of payment of the tax due as self assessment tax..
CA PARAS BAFNA
(Practising CA )
(33428 Points)
Replied 04 August 2012
I agree with member. Interest U/s 234C will not be levied when the CG arises after 15th March.
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