• Taxinfo.in

Interest for defaults in payment of advance tax – Section 234B

An assessee who is liable to pay advance tax but failed to pay such tax or tax paid by him is less than 90% of the assessed advance tax, is liable to pay interest under this section.

Rate of Interest – Simple interest @ 1% per month or part of the month is payable on amount of shortfall in payment of advance tax.

Period of Interest – Interest is chargeable from 1st day of the assessment year to the date of regular assessment (date on which self assessment tax is paid) or where income is determined under section 143(1) then to such date.

Amount on which interest is payable – Tax on total income less advance tax paid, TDS or TCS deducted, relief under section 90/90A/91 and MAT credit under section 115JAA.

Case Laws-

Interest under section 234B is automatic even if assessment order does not contain any direction for payment. CIT vs M/s Bhgat Construction Co. Pvt. Ltd. (SC 2015)

Also Read: Advance Tax Calculation and Payment

0 views0 comments

Recent Posts

See All

Interest on Refund of Income Tax – Section 244A

Where any refund is payable to the assessee, the assessee is entitled to receive interest along with the refund as per the following provisions- When refund is of any advance tax paid or TDS or TCS –

Interest on Excess Refund – Section 234D

If the assessee is granted refund under section 143(1) when no refund is due on regular assessment or granted excess refund under section 143(1) then the assessee is liable to pay simple interest at t

Interest for Deferment of Advance Tax – Section 234C

Interest is payable by assessee under section 234C for non payment or under payment of advance tax. Rate of Interest – Simple Interest @ 1% per month or part of month Interest is calculated  by Non Co

©2020 by Taxinfo.in. Proudly created with Wix.com