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query on Advance Tax

SUYASH KORDE (Student) (136 Points)

22 June 2016

as per income tax act if total tax exceeds Rs. 10000, you have to pay Advance tax if TDS is not there...my query is if i have total tax liability of Rs.125000 and full amount instead of paying in advance tax payment date i.e. 4 times in year... if I pay this on last installment date i.e. on 15th March.. than is there any interest u/s 234b and 234c..

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7 Replies

Kuldipsinh Jadeja (Job) (357 Points)
Replied 22 June 2016

If you pay 90% of your total tax payable after TDS on or before 31st March you can avoid interest u/s 234B. However interest u/s 234C would be levied for deferment of advance tax

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subhash kumar jha (PROFESSION) (445 Points)
Replied 22 June 2016

234C will be levied for deferrement of tax

SUYASH KORDE (Student) (136 Points)
Replied 22 June 2016

if i pay 100% of tax to be paid.. than ..234C is applicable or not...

Kuldipsinh Jadeja (Job) (357 Points)
Replied 22 June 2016

234C would be applicable even though you pay 100% amount only on last installment date i.e.15th March.

Louza (Finance Specialist) (28 Points)
Replied 23 June 2016

Yes 234B and C will apply in this case on the total tax payable since no advance tax was paid during the relevant previous year.234A is interest on delayed filing.

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DILEEP KUMAR.A (Executive Finance) (475 Points)
Replied 23 June 2016

Dear Suyash,

234A: Appiles for default of furnishing ROI

234B : Appiles for default of payment of Advance Tax, which is less than 90% of tax liability by 31.03.20XX

234C: Appiles for default of not fulfilling the crieria of certian % of amount during the Quarter ends.

Tax planning here is,

If you have not paid Adv tax at all in any of the due dates as mentioned in 234C, still you can completely avoid 234B & 234A by paying it atleast on 31.03.20XX. However 234C is unavoidable.

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