How do you calculate interest as per Section 234A 234B 234c?
Calculating Interest Penalty
- 1% interest rate per month for a period of 3 months is computed for advance tax less than 30% of the amount on or before September 15.
- In case advance tax is paid on or before December 15 is less than 60% of the taxable amount, interest of 1% for a period of 3 months is levied.
What is 234A 234B 234c interest?
Under this Section, interest is charged at 1 % on the outstanding tax amount and must be paid from the first day after the due date of filing the return until the date of the actual filing of the return.
How interest u/s 234c is calculated?
Calculation of Interest under section 234C
| Particulars | Rate of Interest | Period of Interest |
|---|---|---|
| If Advance Tax paid on or before September 15 is less than 45% of the Amount* | Simple interest @1% per month | 3 months |
| If Advance Tax paid on or before December 15 is less than 75% of the Amount* | Simple interest @1% per month | 3 months |
What is 234B and 234C?
234A. Delayed Payment of Advanced Tax. 234B. Delayed Payment of Advanced Tax Instalment. 234C.
How do you calculate interest us 234A for AY 2021 22?
- The tax on the total income = 241021.
- Relief U/s 89/90/90A = 15000.
- TDS = 25000.
- Date Of Filing of Return = 02/08/2021.
- Self-Assessment Tax Paid On 01st Aug 2021 = 203027.
- INTEREST U/S 234A:
- Amount on which interest to be calculated: 241021-15000-25000 = 201021.
- Period 1ST Aug 2021 To 2nd Aug 2021 i.e. 1 month.
Is Section 234B and 234C applicable to senior citizens?
Apart from above interest the assesse shall be liable for interest 234B and 234C i.e. interest for default in payment of advance tax and interest on deferred payment of advance tax. As per section 234B, interest at 1% per month or part of a month is levied if assesse has paid less than 90% of the advance tax.
What is 234A interest?
Interest is levied at 1% per month or part of a month. Example-The due date of filing the return of income is 31st July, 2021, and return of income is filed on 9th January, 2022 i.e. after the due and hence, will be liable to pay interest under section 234A.
What is US 234C of income tax?
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.
Is 234B and 234C applicable to 44ad?
Q- Is 234b and 234c applicable to 44ad? Ans. Taxpayer paying tax under presumptive scheme then only one installment is their to pay advance tax.