Hi,
I am getting some amount in this section of ITR-1 form while doing Tax computation in the sheet. I has some balance tax that I already paid last week and have keyed in the details on next sheet. Then why should I be levied this interest?
1 Answers
If tax is not paid by due dates (advance tax schedules, 31st March), interest penalty may arise u/s 234A, 234B and 234C.
Below are more details, just in case if you are curious:
Section 234B - For Short / Non-payment of Advance Tax -This is calculated on the balance tax to be paid. Interest of 1% per month applicable from 1st April of the year till the day you are paying.
Section 234C - For Deferring the payment of Advance Tax A certain % of advanced tax needs to be paid by 15th September (30%), 15th December (60%) & 15th March (100%) of the Assessment year. For the balance tax you paid above, these are missed. There fore 1% per month again -- for 30% of above balance for 3 months, 60% of above balance for 3 months & 100% of above balance for 1 month.
In my view, advanced tax for individuals is crap and should be abolished. All unnecessary and stupid calculations for compliance.
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