Ramesh (SVP) (34 Points)
27 November 2024The advance tax to be paid in June, srp, Dec and Mar is 5%,45%, 75% and 100% of tax due respectively.
if I make a gain of 5Lajs due to sake of equity or debt say in Nov of the year of tax payment, which I was not aware of it in June or Sep. so advance tax paid then was lower than the required proportion. So will I incur penalty and interest for this shortfall in the advance tax paid.
How is the penalty and interest calculated ?
Rama chary Rachakonda
(Master in Accounts & Lawyer email ID:ramachary64@gmail.com voice no:9989324294)
(5208 Points)
Replied 27 November 2024
2. *Interest*: Interest is levied under Section 234B of the Income Tax Act.
To calculate the penalty and interest, follow these steps: -
Calculate the penalty and interest for each shortfall amount.
Rama chary Rachakonda
(Master in Accounts & Lawyer email ID:ramachary64@gmail.com voice no:9989324294)
(5208 Points)
Replied 27 November 2024
2. *Interest*: Interest is levied under Section 234B of the Income Tax Act.
To calculate the penalty and interest, follow these steps: -
Calculate the penalty and interest for each shortfall amount.
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(178033 Points)
Replied 27 November 2024
No. penalty or interest for first two installments as the income earned in November. Pay advance tax 75% in Dec quarter.
Ramesh
(SVP)
(34 Points)
Replied 27 November 2024
Thanks for taking the time to respond.
I have tie conflicting responses.
There is no way for me to know the gains I made in Nov and so if an interest and penalty is levied fir shortfall in advance tax paid in June and Sep, it's in a way unfair.
it has to be one of the above responses. Both can't be true.
Ramesh
(SVP)
(34 Points)
Replied 27 November 2024
Thanks for taking the time to respond.
Unfortunately I have received conflicting responses above.
Not sure if gains from equity/ debt in November is treated any differently from other income. The advance tax due can't be precise for sure, especially when one redeems and make gain during the year. So in case of such increase in total incomes, if interest and penalty is levied it's unfortunate in a sense.
CAclubindia
