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Interest payable for deferment of advance tax

JERRY JOHN (62 Points)

21 June 2017

Dear Friends,

I started business in Sept 2016.

Thereafter I remited Ist installment of advance tax in December 2016 and second and final instalment by 15th March.

While preparing ITR3, an amount of Rs.41607 is reflecting towards interest payable for deferment of advance tax.

Please advise how to reslove this issue in ITR as I was not supposed to pay any advance tax before December 16.

Regards,

Jerry

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5 Replies

vamshi (article assistant) (39 Points)
Replied 21 June 2017

Hiiii...As per the Facts stated despite of business being started in September Advance tax should have been estimated at the beginning of the year itself. How ever you have paid the entire advance tax which provides a relief to you u/s 234B which gets attracted if the advance tax paid is than the self assessment tax. Deferment of advance tax would however be attracted though you have paid the entire tax u/s 234C for deferring the payment... So you cannot get a relief u/s 234C Interest... Suggestion is to pay in correct quantum's in the current year...I wish it would help you...!

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Poltu Ghosh (Job) (1865 Points)
Replied 21 June 2017

Could uou please provide the tax and adv.tax payment details with date of payment. Also mention the date of incorporation mentioned in the PAN card

1 Like

JERRY JOHN (62 Points)
Replied 22 June 2017

Thanks for your instant reply.

Please note that I was an employee in an organisation from April,16 to June 16. TDS on my salary for the said period was Rs.223,307.

Thereafter, I started a small business and revenue from this business started only in October 2016. Advance tax payable on these income of Rs.525300/- as on 15/12/2016 was paid on 13/12/2016 which is 75% of total tax liability.

Balance advance tax was paid on 15/03/17.

Therefore, I have complied all guidelines on Advance Tax. Still this issue.

Seek your clarificaiton on this..

1 Like

vamshi (article assistant) (39 Points)
Replied 22 June 2017

You will not be exemted from 234C which gets attracted due to deferment of Advance tax though you have calculated and paid the entire advance tax correctly

1 Like

Divakar (Student CA Final ) (11857 Points)
Replied 08 December 2017

Firstly file ur itr by paying taxes... Then give an application to ur concern assessing officer regarding this fact and waive off interest... It is upon discretion on ur Assesing officer to waive off interest