difference between 234a,234b,234c

Dear Chanakya,

234 A - Deault   - Failure to furnish return within due dates, i:e 31st July or 30th September

234 B - Default  - Non payment of Advance Tax(at least 90% of ur liability)

234 C - Default  -  Deferment of Installment of Advance Tax

Assessee is liable for payment of advance tax is his Advance tax  liability (i:e TAX - TDS) exceeds Rs. 10,000/-

Dear Amir,

Thank you for your reply. Is the limit raised from 5000 to 10000 recently?.

I have given you a second link in my first post. There it is given that  the assesse attracts penalty only under 234 B. could you tell me why 234a is not applicable in this case?

I cannot understand from this answer what  234c is please explain me that also.

Dear Chanakya,

1) Limit from 5k to 10k has been raised by the latest budgest announed in August 2009.

2) 234 A gets attracted when Return of income is not filed with in due date...There cannot be two penalties for a single default...For non payment of Advance tax Sec 234 B is there..

3) Advance tax is to be paid in certain installments like for corporate assesses in 4 & in 3 installments in case of others..% of tax to be paid under these installments has also been prescribed..So, if an assessee pays the advance tax completely but not as per the % specified under this section then Interest u/s 234 C shall be charged & not 234 B.. 

Dear Amir,

Now  i am very clear about the difference. I don't know how infinitely i should be thankful to you because each time i post  my query, the answer must be from yours. The answer has given rise to  another doubt. Suppose an employee  paid the correct percentage of  advance tax  based on the amount he expected to be receiving in the financial year. If the actual amount doesnot match his expectations, will he also be liable to pay interest under 234b.

Dear Amir,

Now  i am very clear about the difference. I don't know how infinitely i should be thankful to you because each time i post  my query, the answer must be from yours. The answer has given rise to  another doubt. Suppose an employee  paid the correct percentage of  advance tax  based on the amount he expected to be receiving in the financial year. If the actual amount doesnot match his expectations, will he also be liable to pay interest under 234b.

Dear Chankaya,

Thanks 4 those kind words, I m just sharing my understanding.....

It is obvious that one cannot 100% be correct in predicting his tax liability, that is why there is a cushion of 10%, i:e if an assessee has paid advance tax upto 90% of his tax liability then Interest u/s 234 B shall not be charged...

Yes, he will be liable for interest under 234B definately... Whether such increased income is assessed in normal circumstances or after scrutiny.....

So, he's liable to pay interest on it

Hi chanankya, amir is correct..

What i reffered was that if anyone fails to pay even 90%... then has to pay interest as per 234B

Hi Dhiraj,

The excel sheet which u have sent is quite good..........

Well done Brother........

Ya, i know, it was quit amasing so posted...

Thanx for the gesture

A little clarification I offer . Sec 234C is for deferment (delay) in advance tax tax till 31st March where as Sec 234B is for short fall beyond 10% in total tax liability ascertain thru assessment etc from 1st April onwards.

Hope it is clear now 234C till 31st march and 234B there after.

regds

Narendra

Excuse Me All,

    Here if Sec 234b is Applicable in any cases, it also Applicable sec 234c.....

My Doubt Is at what all circustanses sec 234b is applicable but sec 234c is not applicable......?

Thanking You........

it means a person who is not pay 80% advance tax, liable to pay intrest as per section 234B and 234C . However bot section levied on this  ............?