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Regarding Int U/s 234C calculation

26 July 2019

Hi pls tell me how to calculate 234C interest

if my total tax liability for a year is 117000 and no Tax has been paid by me for currently year.

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4 Replies

Hitler Parmar (23 Points)
Replied 26 July 2019

Interest under section 234C is imposed when there is a delay in payment of an instalment of advancetax. You pay interest under Section234C if, Advance Tax is paid on or before 15th June is less than 12% of Assessed Tax. Advance Tax is paid on or before 15th September is less than 36% of Assessed Tax.

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Pranav Aggarwal (469 Points)
Replied 26 July 2019

can u pls send me calculation of above example assuming no advance tax paid

Suresh Thiyagarajan (Student) (3986 Points)
Replied 26 July 2019

1. Sec 234C deals with the deferment of advance tax. Apply 3 % on 15% 45% and 75% each on the tax liability and on the entire amount apply 1% (for march month alone ).
2. You will arrive at an interest amount of Rs. 5908.50 exactly. You verify your answer with mine.
Please correct me if the above solution has an alternative view.