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Interest under section 234

Sorabh Gupta (Manager ( Taxation )) (877 Points)

26 May 2009

Can anyone tell me brief details of Interest u/s 234A , 234B , 234C & its applicablility in case of indl. , & salaried assesee.........

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CA.Tarun Maheshwari (CA, DISA) (7150 Points)
Replied 26 May 2009

Interest Under section 234A, 234B, 234C are equally applicable for all assessees, whether its salaried or industrial assessee. Interest u/s 234A is leviable @ 1% per month when the ITR is not filed within the due date of filing of return. Interest u/s 234B is leviable when the total advance tax deposited during the year falls short of 90% of actual tax liability. This is also payable @ 1%Pm on the amount that falls short. 234C is applicable when there is a default in payment of installments of advance tax at the time prescribed under section and amount shortfalls from the prescribed %age. 234C is leviable @ 1% per month for the period for which the installment was remain unpaid. If you want detailed procedures on 234A, B and C then refer to any latest Income tax book or ready recknor for this purpose.