Income tax paid by me in F.Y.10-11, falls short by approx. Rs5000.Kindly tell me the interest payable on this amount and under which section does this interest comes? ITR-2 has 3 columns for interest payable under Sec 234A, 234B and 234C.Where should I show this interest? Thanks..
2 Answers
For Individual
1) If your total tax liability after deducting TDS is Rs. 10000/- or more then you are liable to pay advance tax on or before 15th March.Failure to pay advance tax will attract to pay simple interest @1% PM on net tax liability u/s 234B from the due date till the date of actual paid.
2) If your total tax liability below Rs. 10000/- then you are liable to pay self assessment tax on or before 31st July. Failure to pay self assessment tax will attract simple interest @ 1% u/s 234A from the due date till the date of actual paid
Interest u/s 234C is to be calculated if the advance tax hasn’t been sufficiently paid within the due dates. 30% of tax has to be submitted by Sep 15th, 60% by 15th Dec and 100% by March 15th. For the defeciency in march interest under 234C has to be charged @ 1% only.
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