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Penaly for lower payment of advance tax

598 views 6 replies

JOSEPH DAVID

GM FINANCE

286 Points Joined August 2008

In case of advance tax nonpayment or lower payment Interest for deferment of advance tax is there @ 1% p.m under sec 234b and 234c-

Whether penalty is leviable for lower payment of advance tax or nonpayment of advance tax

Thanks in advance

Joseph David

Replies (6)

Deepak Tapse

Accounts Manager - Taxation

1771 Points Joined April 2009

I think only 234B & C is applicable .

CA Priya

CS Final

1049 Points Joined September 2009

For both........

CA Priya

CS Final

1049 Points Joined September 2009

For both........

Rajat Singhal CA,CS,CFA

Senior Manager (F&A)

254 Points Joined November 2009

The interest under sections 234B & C for non payment or short payment of advance tax is itself in the nature of penal interest, there is no other penalty for the same.

C.Balaji

Learner

1867 Points Joined October 2008

Interest under sections 234B and 234C for Short payment and deferrment of Advance Tax......

No other penalty is chargeable incase of Advance Tax.........

Aditya Maheshwari

CA in Practice

35867 Points Joined June 2009

Penalty can be levied for non-payment of advance-tax - Penalty can be levied for non-payment of advance tax - E.K. Varghese v. ITO [1974] 96 ITR 577 (Ker.); Swastik Engg. Works v. CIT [1973] 87 ITR 116 (Guj.); Rameshwar Pershad v. CIT [1974] 95 ITR 605 (Punj. & Har.); Smt. Kusum Kumari v. Union of India [1972] 85 ITR 19 (All.); Prakash Cotton Mills (P.) Ltd. v. CIT [1979] 120 ITR 497 (Bom.); CIT v. Sreerama & Co. [1975] 101 ITR 531 (AP).