CA Amit Kumar Khaitan
(Research Analyst)
(360 Points)
Replied 20 May 2010
234A--------August to May= 10 months
Int @ 1%on (48948-26301) = Rs 2267(r.off)
234B-------1st April 09 till date= 14 months
int @ 1%= 3171
234C------ Simply apply the slabs and 3% (and 1%) rates
Shudhanshu Agrawal
(Business)
(2570 Points)
Replied 20 May 2010
In case of TDS on Salary normally company deduct full tax liability as TDS on average basis. But in this case if company has not deducted TDS properly then the above mention interest calculation is correct.
Shiva Kumar
(CA Final)
(208 Points)
Replied 20 May 2010
Interest workings are correct.
But, we got to keep one thing in mind here.
If he has only Salary Income and the shortfall is due to the fault of the employer, i.e., he has not deducted properly, then
Your client need not pay any interest. It is the duty of the employer to deduct tax in case of salaries and as penal proceedings u/s 201 are available, you cannot claim interest from the employee.
On the other hand the shortfall is due to the other INcome of the client which he has not disclosed to his employer, then, the liability is with the Employeee, hence, interest is payable.
Shiva
CAclubindia
