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Interest under 234b & c for salary emloyee on salary income

amit Saxena (Expert) (43 Points)

25 August 2015

Name-	Aarav Saxena
		gross	Conveyance	HRA	Net	TDS
Salary from A Ltd		347766	4000	52245	291521	8000
Salary from B & Co.		377420	4800	70355	302265	0
Salary from C Pvt. Ltd		61742	800	8006	52936	0
total					646722

interest income Rs.13000/- ( interest on saving bank)

80 C investment- rs. 132000/-

TDS of Rs.8000/- only deduct by A Ltd. which is deduct before 15th septeber, 2014.

He wants to file return before due date.

please calculate tax liabilty and please clearly show note on interest under 234B &C.

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8 Replies

Vishal Goel (Chartered Accountant) (1693 Points)
Replied 25 August 2015

Total Income : 659722

Deduction :

u/s 80C : 132000

u/s 80TTA : 10000

-------------------

Taxable Income : 517722

Tax Payable : 29400

Interest u/s 234 B : 1070

Interest u/s 234 C : 790

-----------------

Total tax & Interest : 31260

TDS : 8000

----------------

Tax payable : 23260

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Vishal Goel (Chartered Accountant) (1693 Points)
Replied 25 August 2015

Total Tax liability : 29400

TDS : 8000

--------------

Tax payable : 21400

Calculation of Interest Payable u/s 234 B

(21400 * 1% * 5 months) = 1070

Calculation of Interest Payable u/s 234 C

Advance Tax Payable upto 15th Sep 2014(30%) = 6420

Interest : ( 6420 * 1% * 3months ) = 192

Advance Tax Payable upto 15th December 2014 (60%) =12840

Interest : (12840 * 1% * 3months) = 384

Advance Tax Payable upto 15th March 2015 (100%) = 21400

Interest : (21400 * 1% * 1 months) = 214

Total Interst u/s 234c (192+384+214) = 790

amit Saxena (Expert) (43 Points)
Replied 25 August 2015

234 C sould be rs.956. And he is liable to pay interest as he is salary employee?

amit Saxena (Expert) (43 Points)
Replied 25 August 2015

234 C sould be rs.956. And he is liable to pay interest as he is salary employee?

amit Saxena (Expert) (43 Points)
Replied 25 August 2015

Vishal ....234C wrongly calculate. Total Assessed Tax- 29400 Upto 15 sep- 30% of 29400=8820 Minus paid upto 15 Sep 8000 Balance= 820 Interest - 820*1%*3month=Rs 25 Upto 15dec- 60% of 29400= 17640 Minus paid upto 15 Dec 8000 Balance- 9640 Interest- 9640*1%*3months=Rs. 289 Upto 15 March- 100% of 29400 Minus paid Upto 15Mar 8000 Balance- 21400 Interest - 21400*1%*3months=Rs.642 Total Interest -956 Major issue is not calculatin. I am searching why should he pay as section not said anything for salary person?

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Vishal Goel (Chartered Accountant) (1693 Points)
Replied 26 August 2015

Hello, Section -234C applicable to all assessee (Corporate Taxpayer & Non- Corporate Taxpayer).

Vishal Goel (Chartered Accountant) (1693 Points)
Replied 26 August 2015

Hello , I m correct,
How to calculate interest for deferment of advance tax under section 234C

Assessee liable to pay advance tax is required to pay it in various instalments. If such instalments are not paid before the due date as mentioned in section 211 of income tax act 1961 then simple interest under section 234C at the rate of 1% per month or part of the month is payable for a period of 3 months for every deferment, except for the last instalment of 15th March where it will be 1% for one month.

Table below shows how interest under section 234C is calculated for deferment of advance tax.

Due date of instalment	Period of interest	Amount on which simple interest @ 1% is to be paid
Due date of instalment	Period of interest	For Companies	For other than Companies
15th June	3 months	15% of tax due on returned income minus advance tax paid up to due date	Not applicable.
15th September	3 months	45% of tax due on returned income minus advance tax paid up to due date	30% of tax due on returned income minus advance tax paid up to due date
15th December	3 months	75% of tax due on returned income minus advance tax paid up to due date	60% of tax due on returned income minus advance tax paid up to due date
15th March	One month	100% of tax due on returned income minus advance tax paid up to due date	100% of tax due on returned income minus advance tax paid up to due date