Do I need to pay interest on the income tax due?

PBS1986 1
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Hi,

During FY 2010-11, I was associated with 2 different employers (between Apr 2010 - Feb 2011 : employer1, Mar 2011 : employer2).

At employer1, TDS was nill as the net taxable income was well within the limits. However, when the total income for FY 2010-11 is computed (income from employer1 + income from employer2), the net taxable income is INR 166370. This essentially means that I haven't paid tax either in the form of TDS/Self-assessment before Mar 2011.

Since I am filing the ITR now, I understand that I am supposed to pay due tax of INR 656.

Should I also pay an interest of 1% of the due amount from Apr 2011 to current date in addition to the due amount? Please clarify.

Thanks in advance!

tax-interest section-234b section-234c self-assessment-tax tds income-tax
1 Answers

As your total pending tax liability is less than Rs 10,000; no interest is payable under section 234b and 234c.

You just need to pay due tax only and file income tax return before 31st July.

Pankaj Batra5212
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