Sir,
I want to know the interest calculation under sec 234 b and c while making Income tax computation at the end of 2012 march financial year for corporates.
Regards
Rama Krishna.
2 Replies
VALLABH SONECHA
(Practicing Chartered Accountants)
(73 Points)
Replied 01 June 2012
Advance tax due dates for corporates are:
15th june: 15% of assesed tax
15th Sept: 45% of assesed tax
15th dec: 75% of assesed tax
15th March: 100% of assesed tax
Lets assume assessed tax to be "Z" & the total of advance taxes paid upto relevant dates be A,B,C& D which means that B indicates advance tax paid on 15th june & 15th sept also)
So interest u/s 234C shall be calculated as
{((Z*15%- A)*1%*3)+((Z*45%-B )*1%*3)+((Z*75%-C )*1%*3)+((Z*100%-D )*1%*1)}
Interest calculation U/s 234B:
90% of the assessed tax should have been paid before 31st March.
So if the advance tax paid is less than 90 % of assesed tax then interest shall be charged at 1% p.m on balance tax payable ,upto the date of payment of tax.
Giridhar S Karandikar
(Team Lead)
(7548 Points)
Replied 07 June 2012
One point to be noted in the above is that from the 90% assessed tax, TDS if any should be reduced first & after that on the balance amount interest under the two section needs to be calculated
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