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| *Ostroff, Fair and Company>>>India Taxes |
To explain about sec.234 ABC? |
to give more about interest rate 234A Interest for defaults in furnishing return of income Simple interest @1% per month. Computation of Interest payable Step 1: Compute tax on total income determined under section 143(1) or on regular assessment under section 143(3)/144/147/153A Less: TDS/TCS Less: Advance Tax paid. Calculate the interest on the balance amount computes above, as under: Amount on which interest is payable * 1/100 * number of months Step 2: Deduct the interest already paid under section 140A as self-assessment tax computed on total income declared by the assessee. Step 3: Step 1- Step 2 shall be the balance interest payable under section 234A. 234B Interest for defaults in payment of advance tax Simple interest @1% per month. Computation of Interest payable Compute tax on total income determined under section 147 or 153A Less: Tax on total income determined under sections 143(1), 143(3), 144 or 147 The balance amount shall be the amount on which interest is payable under section 234A(3). 234C - Interest for defernent of advance tax- Simple interest @1% per month for 3 months for short payment in first and second instalments and 1% for one month in case of 3rd instalment. In the case of non-Corporate Assessee Circumstances in which interest is payable under section 234C Rate of interest Period Amount on which interest is to be paid Where Advance Tax paid on or before Sept. 15th is less than 30% of tax due on returned income Simple interest @1% per month Three months 30% of tax due on returned income minus advance tax paid upto 15th Sept. Where Advance Tax paid on or before Dec. 15th is less than 60% of tax due on returned income Simple interest @1% per month Three months 60% of tax due on returned income minus advance tax paid upto 15th Dec. Where Advance Tax paid on or before March 15th is less than 100% of tax due on returned income Simple interest @1% per month One month 100% of tax due on returned income minus total advance tax paid upto 15th March In the case of Corporate Assessee Circumstances in which interest is payable under section 234C Rate of interest Period Amount on which interest is to be paid Where Advance Tax paid on or before June 15th is less than 12% of tax due on returned income Simple interest @1% per month Three months 15% of tax due on returned income minus advance tax paid upto 15th June Where Advance Tax paid on or before Sept. 15th is less than 36% of tax due on returned income Simple interest @1% per month Three months 45% of tax due on returned income minus advance tax paid upto 15th Sept. Where Advance Tax paid on or before Dec. 15th is less than 75% of tax due on returned income Simple interest @1% per month Three months 75% of tax due on returned income minus advance tax paid upto 15th Dec. Where Advance Tax paid on or before March 15th is less than 100% of tax due on returned income Simple interest @1% per month One month 100% of tax due on returned income minus total advance tax paid upto 15th March 234 A, 234B and 234C are three sections of I T Act 1961 under which Govt imposes interest at specified rates in different circumstances. Briefly, 234A is interest payable for delay in filing your return of Income. 234B is imposed if you do not pay 90% of your tax liability as Advance Tax .Interest is imposable on the amount of tax not paid as advance tax at specified rates. 234 C is also delay in payment of Advance Tax within due dates. You may be aware that advance tax has to be paied in case of individuals by 15 Sept, 15 Dec and 15 March of 30%, 30% and 40 % . If in a specified date , the advance tax is not paid, interest is impose at specified rate . Computation gets complex in case of scrutiny cases u/s 143(3). One needs lots of practice to apply these simple looking interest provison of the I T Act. Visit www.incometaxindia.gov.in and read these section. |
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