Penalty for delayed payment of tax

Of the total tax of Rs. 69,292, only 32, 898 is deducted through TDS, because of two different organizations being deductors at different durations for the assessment year, 2012-13. Is it alright to pay the difference? or if I have to pay interest at what rate should I pay the interest? Is there any other penalty? Thanks for your time.

asked Aug 20 '12 at 11:54 by Pavana 1111


As pending tax is more than Rs 10,000 and its more than 10% of total taxes, you would need to pay interest penalty on pending income tax u/s 234B and 234C.

Under section 234B, 1% interest per month would be charged for 5 months (April-Aug 2012) on round off of remaining tax (Rs 36,400). That would be Rs 1674.

Under section 234C, interest would be charged for late payment of advance taxes. 30% tax should have been paid by 15th Sept, 60% by 15th Dec and 100% by 15th march.
Shortfall in Sept = 30% of (69292-32898) = 10918. Interest penalty = 1% x 3 x 10918 = Rs 328
Shortfall in Sept = 60% of (69292-32898) = 21386. Interest penalty = 1% x 3 x 21386 = Rs 655
Shortfall in Sept = 100% of (69292-32898) = 36394. Interest penalty = 1% x 1 x 36394 = Rs 364
Total penalty u/s 234C = Rs 1347

answered Aug 20 '12 at 13:55 by Pankaj Batra 5.2k320

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Asked: Aug 20 '12 at 11:54

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Last updated: Aug 20 '12 at 13:55