What is interest u/s 234 A B C?

Interest under section 234C is imposed when there is a delay in payment of an instalment of advance tax. You pay interest under Section 234C 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.

What is Section 234 C of Income Tax Act?

Section 234C: Payment of Advance Tax not on Time or Interest for Deferment of Advance Tax. Section 234C of the Income Tax Act defines the rate of interest and conditions if you delay the advance tax instalments. Everyone, including salaried taxpayers, is required to pay advance tax every quarter of the financial year.

What is 234 B and 234C?

234A. Delayed Payment of Advanced Tax. 234B. Delayed Payment of Advanced Tax Instalment. 234C.

How do you calculate 234 C interest?

The rate of interest will be charged @ 1% per month for three months. The amount on which interest is calculated is 15% of the amount less tax already paid before the dates.

How do you calculate interest 234A 234B & 234C with example?

INTEREST UNDER SECTION 234A FOR LATE OR NON-FURNISHING OF INCOME TAX RETURN. Simple interest @ 1% for every month or Part thereof from the due date of filing of the Return to the date of furnishing of the return & in case return is not filed, it is upto the date of completion of assessment u/s 144.

Is 234B and 234C applicable to senior citizens?

As per Sec. 234B of the I-T Act, senior citizens without professional income are not liable to pay advance tax. As of now, banks are deducting 10% tax on fixed deposit interest earned in the case of senior citizens also. This tax deduction is tantamount to compulsory deduction of advance tax payment.

How do you calculate interest under 234B and 234C?

If the payment falls short of 90% of the tax required to be paid, the interest under section 234B shall be charged. Hence there is a shortfall of payment. 3….Interest on defaults in payment of Advance tax – Section 234B of the Act.

DUE DATE OF INSTALLMENTS	AMOUNT PAYABLE
On or before 15th March	100% of advance tax