What is U S 234B and 234C?

Under Section 234B, the taxpayer must pay at least 90% of the tax that is due to be paid at the end of the financial year. The taxpayer has the provision to pay his tax in the form of 4 instalments. Under Section 234C, a penalty is imposed if the tax payment is delayed.

What is interest us 234B?

Under section 234B, interest for default in payment of advance tax is levied at 1% per month or part of a month. The nature of interest is simple interest. In other words, the taxpayer is liable to pay simple interest at 1% per month or part of a month for default in payment of advance tax.

When 234B & 234C is applicable?

Interest under section 234B is applicable when: Your tax liability after reducing TDS for the financial year is more than Rs 10,000 and you did not pay any advance tax.

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.

HOW IS 234C calculated?

Interest is charged at 1% per month on net outstanding tax. Interest is calculated as per simple interest calculation….Interest Calculation Under Section 234C.

What is the penalty for not paying advance tax?

Interest under Section 234B is levied if the taxpayer has not deposited advance tax or if the advance tax deposited is less than 90% of the total tax liability. The taxpayer will be liable for interest under Section 234B at 1% per month or part of the month from April till the date of payment of tax.

HOW IS 234C interest calculated?

The interest for late payment is set at 1% on the amount of tax due. It is calculated from the individual cut-off dates shown above, till the date of actual payment of outstanding taxes.

What if advance tax is not paid on time?

Under this section, if advance tax is not paid on schedule, an interest of 1% will be charged. This interest is for deferment in instalments of advance tax. If your company or profession is registering ‘Profits and Gains’ for the first time, then you do not have to pay any interest on the due amount.

What is interest rate for late payment?

The penalties are equal to five percent of the balance owed plus and an additional percent for each month you are late. Interest is a compounded daily interest with a rate that changes every three months. If you owe tax but do not have enough money to pay, the CRA still urges you to file on time.

What happens if advance tax is not paid?

What TDS means?

Tax Deducted at Source
TDS full form is Tax Deducted at Source. Under this mechanism, if a person (deductor) is liable to make payment to any other person (deductee) will deduct tax at source and transfer the balance to the deductee. The TDS amount deducted will be remitted to the Central Government.

Is it compulsory to pay advance tax?

Salaried, freelancers and businesses– If your total tax liability is Rs 10,000 or more in a financial year you have to pay advance tax. Advance tax applies to all taxpayers, salaried, freelancers, and businesses. Senior citizens, who are 60 years or older, and do not run a business, are exempt from paying advance tax.

What’s the difference between interest under 234B and 234C?

(Shortfall means difference between assessed tax and advance tax paid). Interest under section 234 B = 115000*1%*4 months (Apr-July) = Rs.4600 Before we talk about Section 234C, we need to talk about the due dates of payment of advance tax. Non-corporate assessee: 30% of such advance tax. 60% of total advance tax. Section 234C is very simple.

What is the penalty under section 234B of Income Tax Act?

Hence Priya is liable to pay Rs. 624, as a penalty on the interest of the assessed tax, under Section 234B. Interest under section 234C is imposed when there is a delay in payment of an instalment of advance tax.

When is interest calculated in caclubindia you / s 234A?

It is calculated from April 1st of the next financial year to date of determination of total income under Section 143 (1). But, if regular assessment u/s. 143 (3) is completed, then interest is chargeable up to the date of regular assessment.

How is interest you / s 234C calculated in Excel?

The interest is calculated @1% from the due date to the actual date of payment. Interest u/s 234C is levied for a period of 3 months for the first, second & third installment. The nature of interest is simple interest.