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interest u/s 234c

tarun (student) (42 Points)

02 June 2010

Is T.D.S. is deducted from taxpayable while calculating intrest u/s 234c just like advance tax

(mr. ram lal)

tax payable -34000

t.d.s deducted -13000

on 29.9.2009-Rs.3000 & 30.12.2009--Rs.10000

how interest u/s 234 c will be calculated

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6 Replies

CA Manoj Tilokani (JOB) (163 Points)
Replied 02 June 2010

YES BROTHER IT WILL BE DEDUCTED ( P G NO: 799 TAXXMAN STUDENT GUIDE FOR PCC\IPCC)

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CA Gaurav Choradia (Relationship Manager ) (418 Points)
Replied 02 June 2010

TDS is always treated as Advance Tax.

so for calculation of interest u/s 234C TDS should be adjusted from Tax liability and then interest shall be calculated.

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CA Sandeep Thakur (Managment Trainee) (188 Points)
Replied 02 June 2010

Yes Gaurav is right

In computing the interest under section 234C the TDS will be treated as advance tax

While computing the interest under section 234A the self assessment tax paid upto the date of filling of return of income is allowed as per the Honble SC judgement in the case of Dr.Prononoy Roy

Regards

Sandeep Thakur

kantijain (Chartered Accountant in Practice) (385 Points)
Replied 02 June 2010

Dear tarun,

TDS is always treated like an advance tax paid on the first day of the financial year (irrespective of when the deductor paid & remitted to the Central Govt). In your case Rs.13000 is directly deductible from Rs.34000 and on balance Rs.21000 interest u/s 234C shall be calculated.

Regards

Kanti Jain