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Will I be liable to pay interest 234 B & C

Maharishi (Proj Lead) (26 Points)

16 June 2010

As per the form 16 all the tax are deducted from my salary, except for bank interest. My bank interest comes to around 9000Rs and I will be paying that this month around 3000Rs as additional tax (which was calculated after adding sal and bank intrest as sources of income). So my question is will I be liable to pay interest 234 B & C on that additional tax (3000Rs).

Please advice

Maharishi

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6 Replies

Akhil Gupta (Manager F&A) (856 Points)
Replied 16 June 2010

Respected Maharishi

YES YOU WILL BE LIABLE FOR FOR PAYMENT OF INTEREST U/S 234 (A/B/C).

The attached file will help you in the calculation of interest u/s 234 A/B/C. Just fill your data in the highlighted cells and required calculation will automatically be done.

Attached File : 50 interest 234a 234b 234c.xls downloaded: 642 times

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Maharishi (Proj Lead) (26 Points)
Replied 16 June 2010

Hi Akhil, Thanks for all your help.

Maharishi

Rahi Naik (student) (180 Points)
Replied 19 June 2010

Sec 234A-late Filing of return only in case when u r liable for payment of tax - "No tax No Interest"

Sec 234 b N c regarding payment of advance tax which less than 90% of ur tax liability n advance tax payment default as per act and when person total tax liabilty more than or equal to Rs 10,000/- its apply also in case when ur TDS deducted.

Namita (CA Practice) (41 Points)
Replied 20 June 2010

Mr Maharishi, You will not be liable to pay Interest u/s.234A/B/C.

SECTION 234A : Interest for late filing of return i.e. after due date.In this case you are not liable as for A.Y. 2010-11 the due date will be 31st July.

SECTION 234B: Interest for default in payment of Advance Tax . In this case you are not liable as per the information provided by you, It seems that your tax liability does not exceed Rs 10000/- and also being a salaried employee TDS being deducted regurlarly, so you are not liable to pay advance tax on other income and so no interest will be levied.

SECTION 234C: Interest for deferment of Advance Tax . In this case since you are not liable to advance Tax the question of Interest U/s.234C does not arise.

Maharishi (Proj Lead) (26 Points)
Replied 20 June 2010

Thanks Namita -Maharishi

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Vignesh Shekar (Article Assistant) (66 Points)
Replied 26 July 2012

Originally posted by : Namita

Mr Maharishi, You will not be liable to pay Interest u/s.234A/B/C.

SECTION 234A : Interest for late filing of return i.e. after due date.In this case you are not liable as for A.Y. 2010-11 the due date will be 31st July.

SECTION 234B: Interest for default in payment of Advance Tax . In this case you are not liable as per the information provided by you, It seems that your tax liability does not exceed Rs 10000/- and also being a salaried employee TDS being deducted regurlarly, so you are not liable to pay advance tax on other income and so no interest will be levied.

SECTION 234C: Interest for deferment of Advance Tax . In this case since you are not liable to advance Tax the question of Interest U/s.234C does not arise.

Dear Ms.Namitha,

As you said above, the tax provision was right, But Mr.Maharishi has crossed the limit of Rs.10000 tax liability, as he has salary income and tds for the same has been already deducted and he was about to pay 3000 extra tax. so totally, his tax liab was >10000 and he is liable for 234 B & C.