Taxontips
No Result
View All Result
Wednesday, March 22, 2023
  • Home
  • Income Tax
    • Income Tax Return
    • Tax Notice/ Personal consultation
    • Compliance Notice
    • Faceless Assessment
  • GST
    • GST Registration
    • GST Consultation
  • News
    • Income Tax News
    • GST news
    • Budget News
    • Business & Other News
  • Q & A
  • About us
  • Contact us
Talk to an Expert
  • Home
  • Income Tax
    • Income Tax Return
    • Tax Notice/ Personal consultation
    • Compliance Notice
    • Faceless Assessment
  • GST
    • GST Registration
    • GST Consultation
  • News
    • Income Tax News
    • GST news
    • Budget News
    • Business & Other News
  • Q & A
  • About us
  • Contact us
No Result
View All Result
Taxontips
No Result
View All Result

Interest for non payment of Advance Tax: (Section 234B & 234C):

Income tax Expert by Income tax Expert
November 7, 2019 - Updated on March 15, 2020
in Income Tax News
2
Interest for non payment of Advance Tax: (Section 234B & 234C):
119
SHARES
1.5k
VIEWS
image_pdfPDFimage_printPrint

There are two types of interest leviable for non payment of advance tax:

  1. Interest u/s 234B (Applicable when advance tax paid is less than 90% of total tax during the year): Interest u/s 234B is applicable where no advance tax was paid during the Financial year or advance tax paid was less than 90% of the total assessed. Interest shall be paid @1% per month or part of month of such amount which was less than total advance tax and it shall be liable for 1st April of the next financial year and will be liable to be paid till the date total tax is paid by assessee or till the time total tax is determined u/s 143(1) or under regular assessment (it shall include assessment made for the first u/s 147 or section 153A) and tax paid by assessee falls short of tax determined above.

 

Assessed Tax shall be tax determined u/s 143(1) or under regular assessment and it shall be reduced by TDS or TCS credit available with assessee or relief u/s 89 (i.e. relief for advance salary or arrears of salary) or relief u/s 90, 90A and 91 (i.e. relief from double taxation and credit of foreign tax paid) or credit of MAT or AMT (u/s 115JAA or 115JD respectively)

Credit shall also be provided of self assessment tax paid u/s 140A of the Income tax act while calculating interest u/s 234B.

Where an application is made before settlement commission interest u/s 234B shall be calculated from the 1st April of the relevant assessment year till the date application for settlement commission is submitted. If in order of such settlement commission tax is increased interest shall be calculated on such increased amount from the 1st April of the relevant assessment year till the date of such order.

Where income of assessee is increased by way of reassessment or recomputation u/s 147 or 153A as compared to income computed u/s 143(1) then interest shall be payable on such increased tax from 1st April of relevant assessment year till the date of order u/s 147 or 153A.

Where any income is increased or decreased by order u/s 154 (rectification) or 155 or 250 (CIT(A) order), 254 (ITAT order), 260 (High Court order), 262 (Supreme court order) and 263 & 264 (revision by CIT) interest on such increased or decreased tax shall be applied accordingly.

 

  1. Interest u/s 234C (Applicable when installment of advance tax are not fully paid): Interest u/s 234C shall be paid @1% for a month or part of month if:

 

For Normal Tax payers who does not pay advance tax:

 

Till Amount of total tax Interest for months
15th June 15% of Tax due on returned income 3 months
15th September 45% of Tax due on returned income 3 months
15th December 75% of Tax due on returned income 3 months
15th March 100% of Tax due on returned income 1 month

 

However above interest for first two installment shall not be applicable if assessee pays atleast 12% and 36% tax for installment of 15th June and 15th September respectively.

 

For people filing return under presumptive taxation i.e. u/s 44AD and 44ADA:

The person declaring income u/s 44AD(1) and 44ADA(1) can pay 100% advance tax before 15th March and same themselves from 234C interest. However if they don’t pay advance tax till then, then the person needs to pay interest @1% for 1 month if the advance tax paid by such assessee is less than tax on returned income.

Provided that nothing contained in this section shall apply for an installment if the shortfall in payment of advance tax is due to failure to estimate or shortfall due to:

  • Capital gain income
  • Income u/s 2(24)(ix) i.e. income on winning and lottery
  • Income from business or profession and such income has arisen for the first time in case of assessee.
  • Income u/s 115BBDA (i.e. income from dividend of domestic companies.

However the above provision will be applicable if the assessee makes full payment of tax in remaining installment or till 31st March.

For the above section tax due on returned income shall mean tax chargeable on income declared by the assessee in his return of income filed for the relevant assessment year as reduced by TDS or TCS credit available with assessee or relief u/s 89 (i.e. relief for advance salary or arrears of salary) or relief u/s 90, 90A and 91 (i.e. relief from double taxation and credit of foreign tax paid) or credit of MAT or AMT (u/s 115JAA or 115JD respectively).

 

Note: If you go through the above provision properly you will come to know that section 234C charges interest for the period starting from June to March (i.e. interest on June to August for first installment, September to November for second installment, December to February for third installment and for March in case of fourth installment) of the financial year and 234B charges interest for period after that and no interest is charged for the period of April and may of relevant Financial Year.

 

If you need assistance you can ask a question to our expert and get the answer within an hour or post a comment about your views on the post and also subscribe to our newsletter for latest weekly updates.

image_pdfPDFimage_printPrint
Previous Post

Section 194M: TDS on payment made for contract, commission and professional service for personal use

Next Post

Are your personal assets liable for capital gain? What is capital asset and capital gain income?

Related Posts

Who can sign/ e verify your Income tax return?
Income Tax News

Income tax department runs campaign to allow e-verification of return after 120 days for AY 2022-23

March 16, 2023 - Updated on March 15, 2023
Guidelines for manual selection of returns for Complete Scrutiny during the financial-year 2019-20-
Income Tax News

CBDT’s e-Verification Scheme harnesses information technology to facilitate voluntary compliance

March 13, 2023
This is how Income Tax Department recover money from big defaulters.
Income Tax News

Direct Tax Collections for F.Y. 2022-23 up to 10th March 2023

March 11, 2023
Guidelines for manual selection of returns for Complete Scrutiny during the financial-year 2019-20-
Income Tax News

Format of Form 26AS changed by Income tax department | Advance tax and self assessment tax not available in Form 26AS

February 28, 2023
Calculation sheet for comparison of tax payable under new and old tax regime for individual and HUF – 115BAC
Income Tax News

Income tax calculator for AY 2024-25 with changes proposed by Finance Bill, 2023 released by Income tax department

February 22, 2023
Due date for Tax audit for A.Y. 2019-20 extended from 30th September to 31st October
Income Tax News

CBDT notifies Income Tax Return Forms in PDF for Assessment Year 2023-24 well in advance

February 16, 2023
Next Post
Are your personal assets liable for capital gain? What is capital asset and capital gain income?

Are your personal assets liable for capital gain? What is capital asset and capital gain income?

Comments 2

  1. Pingback: interest on non payment of advance tax - bankwatches
  2. Pingback: No extension of due date for payment of Advance Tax | Due date for 1st installment 15th June - Taxontips

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Google Custom search

Recent Posts

  • Advisory for the taxpayer wishing to register as “One Person Company” in GST
  • GST NUMBER TO PROFESSIONALS WORKING FROM HOME | Clarification by Ministry of Finance
  • Delhi South CGST unearths fake invoicing racket involving tax evasion of Rs. 17 crore, 2 held
  • UIDAI makes online document update in Aadhaar free of cost; to benefit millions of residents
  • Income tax department runs campaign to allow e-verification of return after 120 days for AY 2022-23

Recent Comments

  • Income tax department runs campaign to allow e-verification of return after 120 days for AY 2022-23 - Taxontips on Time limit for verification of ITR reduced from within 120 days to 30 days of filing of ITR electronically
  • How to Save Tax on Rental Income? - AWHO VIJAY VIHAR on A person can keep 2 house as self occupied property – Some issues.
  • Benny Joe on Clarification for the purposes of Section 269ST of the I.T. Act in respect of dealership/distributorship contract in case of Co-operative Societies
  • What is Tax declaration to be filed with Youtube in USA? - Taxontips on Now Youtubers in India will get even less amount from Youtube | 24% Tax withholding by Youtube in USA
  • wesley on Clarification for the purposes of Section 269ST of the I.T. Act in respect of dealership/distributorship contract in case of Co-operative Societies

Categories

  • Budget News
  • Business & Other News
  • Case Laws
  • GST news
  • Income Tax News
  • News

Browse Topics by Date

March 2023
M T W T F S S
 12345
6789101112
13141516171819
20212223242526
2728293031  
« Feb    
  • GSTR 9/ 9C due date to be extended to 31.10.2020 | E-invoicing will be voluntary in the beginning 79.5k views
  • How to pay Membership and COP fees of ICAI for 2020-21 | 78k views
  • Code/ Nature of payment 6CR updated by NSDL in challan 281 for paying TCS on sale of goods 68.9k views

Recent Notification

Representation on Extension of due date for taking Input Tax credit of F.Y. 2018-19

Advisory for the taxpayer wishing to register as “One Person Company” in GST

March 21, 2023
GST

GST NUMBER TO PROFESSIONALS WORKING FROM HOME | Clarification by Ministry of Finance

March 20, 2023

RSS Taxontips

  • Advisory for the taxpayer wishing to register as “One Person Company” in GST
  • GST NUMBER TO PROFESSIONALS WORKING FROM HOME | Clarification by Ministry of Finance
  • Delhi South CGST unearths fake invoicing racket involving tax evasion of Rs. 17 crore, 2 held
  • UIDAI makes online document update in Aadhaar free of cost; to benefit millions of residents
  • Income tax department runs campaign to allow e-verification of return after 120 days for AY 2022-23
  • CBDT’s e-Verification Scheme harnesses information technology to facilitate voluntary compliance
  • Direct Tax Collections for F.Y. 2022-23 up to 10th March 2023
  • Clarification on No claim bonus and E-way bill by GST department [Read circular]
  • Statutory Compliance Calendar for March 2023 | Income tax, GST and various other laws
  • What is Tax declaration to be filed with Youtube in USA?

Categories

  • Budget News
  • Business & Other News
  • Case Laws
  • GST news
  • Income Tax News
  • News

Site menu

  • Home
  • Income Tax
    • Income Tax Return
    • Tax Notice/ Personal consultation
    • Compliance Notice
    • Faceless Assessment
  • GST
    • GST Registration
    • GST Consultation
  • News
    • Income Tax News
    • GST news
    • Budget News
    • Business & Other News
  • Q & A
  • About us
  • Contact us
Taxontips

TaxOnTips provides you all tax related solutions in easy way and update you with its regular updates & notifications Visit us for details.
We are based in Jaipur, India

© 2019-2021 Taxontips.com - Tax assistance at your Fingertips

No Result
View All Result
  • Login/Signup
  • Income Tax
    • Income Tax Return
    • Tax Notice/ Personal consultation
    • Compliance Notice
    • Faceless Assessment
  • GST
    • GST registration
    • GST Consultation
  • News
    • Income Tax News
    • GST news
    • Budget News
    • Business & Other News
  • Q & A
  • About us
  • Contact us
  • Ask an expert/ Talk to an expert
  • Privacy Policy
  • Terms of use

© 2019-2021 Taxontips.com - Tax assistance at your Fingertips

Login to your account below

Forgotten Password? Sign Up

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
Book Phone consultation with expert

Sitting home or at your office and don't have time to visit CA's office or don't know where to consult CA. Book your consultation with an expert practicing Chartered Accountant and get your query solved.

Book a phone consultation for 30 minutes with our expert at a very basic cost.

Book consultation

No thanks, I'm not interested!

ITR 1 to 7 now available for FY 2021-22!!File your ITR with an experienced Chartered Accountant

Now File your Income Tax return for F.Y. 2021-22 with an Experienced Practicing Chartered Accountant and not just with any person like other websites offer. Return filing starts at Rs. 500/-

Book ITR filing with Expert

Never see this message again.

Subscribe for Latest Tax Updates
You name
Yourname@email.com

Never see this message again.