CA SUBBIAH K (SENIOR MANAGER - F&A) (105 Points)
02 August 2008While calculating the interest U/S.234B on tax liability, whether we have add interest U/S.234C to the tax liability?
In the same way, While calculating the interest U/S.234A on tax liability, whether we have add interest U/S.234C & 234B to the tax liability?
M.Sriram Shenoy
(CA Final)
(814 Points)
Replied 02 August 2008
No. Interest u/s.234A, B, C should be calculated independently. Interest under either of the sections should not be added while calculating respective interest workings.
CA RAMESH KUMAR AHUJA
(CA, DISA, LLB)
(5452 Points)
Replied 04 August 2008
No, it is not to be included for calculating the interest u/s 234B otherwise it will tentamount to payment of compound interest u/s 234C while simple interest is payable u/s 234A, B or C.
Joji Abraham
(Service)
(20 Points)
Replied 18 August 2008
Please explan the method for calculating interest U/S.234B and U/s 234C.
venkatesh c
(Audit)
(63 Points)
Replied 18 August 2008
Interest u/s 234A is to be calculated if the payment of the tax is after the due date of filing the returns [as mentioned for the particular assessee u/s139(1)] @ 1% per month on net tax payable(after TDS Deduction).
Interest u/s 234B is to calculated if the payment of tax is after the last day of the previous year @ 1% per month on the net tax payable.
Interest u/s 234C is to be calculated if the advance tax hasn't been sufficiently paid within the due dates.
Due dates and the amount required to be paid for
Companies
June 15th - 15% of Net tax
Sep 15th - 45% of net tax
Dec 15th - 75% of Net tax
March 15th - 100% of Net tax
Other assessees
Sep 15th - 30%
Dec 15th - 60%
Mar 15th - 100%
If the advance Taxes are not paid within the due dates,
then for the deffecient amount interest will be charged at 1% per month
i e , 3% for all the defeciencies upto march
and for the defeciency in march advance tax has to charged @ 1% only
Hemant Medatwal
(Services)
(43 Points)
Replied 01 September 2008
i m salaried person & having tax liability of Rs.10217/-for a.y. 2008-09. There is no tds on salary / no payment of advance tax. pls tell me what will the penalty / interest etc. u/s 234a,b,c ? pls give solution
PRAVEEN
(Finance Manager)
(81 Points)
Replied 01 September 2008
Hi Hemant
Please find the calculation Below.
Interest U/s 234A( Taken as Return filied in the month of Sep 2008)
Interest = 10217*1%*2=204/-
Interest u/s 234B
Interest= 10217*1%*6Months=613/-
Interest U/s 234C
Interest -Sept- 30% of 10217= 10217*30%*1%*3=92/-
Interest -Dec- 60% of 10217 =10217*60%*1%*3=184/-
Interest - Mar- 100% of 10217= 10217*100%*1%=102/-
Total Interest U/s 234C = 378/-
Therefore Total Interest Payable = 204+613+378=1195/-
| Originally posted by :M.Sriram Shenoy | ||
| " | No. Interest u/s.234A, B, C should be calculated independently. Interest under either of the sections should not be added while calculating respective interest workings. | " |
RAJBIR SINGH AHLAWAT
(ACCOUNTANCY)
(22 Points)
Replied 02 May 2009
income tax for the year 2007-08 Rs.38445 of company and return file on 30th september 2008 how and how much amount of interest to be paid under section 234a/b/c for the companies?
Thanks with regards
CA SUBBIAH K
(SENIOR MANAGER - F&A)
(105 Points)
Replied 03 May 2009
| Originally posted by :RAJBIR SINGH AHLAWAT | ||
| " | income tax for the year 2007-08 Rs.38445 of company and return file on 30th september 2008 how and how much amount of interest to be paid under section 234a/b/c for the companies? Thanks with regards |
" |
refer above calculations and substitute your amount of tax payable..
Rahul Poddar
(CHARTERED ACCOUNTANTS)
(998 Points)
Replied 29 September 2009
I am providing herewith the solution for Interes u/s 234A/234B/234C of Income Tax Act.
RAHUL PODDAR
Rahul Poddar
(CHARTERED ACCOUNTANTS)
(998 Points)
Replied 04 October 2009
CA kr chowdary
(Financial analysit)
(32 Points)
Replied 23 December 2009
pls give the detaild calculation of the interest under section 234A, B , C
CAclubindia
