Interest Sec 234a, 234b, 234c - Calculator

							                                          Interest U/s 234A




                         Please enter values in Yellow cells to get the details:
Interest U/s 234A                                                                        MM/DD/YYYY
Due date of filing the tax returns                                                          3/31/2009
Date of actual filing                                                                        5/6/2010
                           Simple interest @ 1%                                    Rs.           980
                                                                                                  13


Self assessment tax on Returned Income (U/s 140A)                                              15000
Less: Advance tax                                                                               4000
Less: TDS                                                                                       2000
Less: Double taxation relief                                                                    2000
Net Tax payable                                                                                 7000
                                          Interest U/s 234B & 234C


                             Please enter values in Yellow cells to get the details:
                                         Interest Calculation for FY. 2007-08, & 2008-09
Assessee Company              Assessment Year 2009-10
Total Tax payable on Assessed Income                                                       A
Less : Double taxation relief                                                              B
Less : TDS Receiable                                                                       C
                                                                          (A - B - C)      D
Less Advance Tax
                        Upto          15-Jun-08                      1000       1,000.00   E
                        Upto         15-Sep-08                       5000       6,000.00   F
                        Upto         15-Dec-08                       2000       8,000.00   G
                        Upto         15-Mar-09                                  8,000.00   H

Balance Tax

                             Months               Rate                   Amount                Interest

                                             12          1%                  22,000.00              2,640.00
Interest of Section 234 B                                                                              2,640

Interest of Section 234 C                                                                                  985

                                                                         Total Interest                   3,625
55,000
     0
25,000
30,000




 8,000
22,000
Sec    Particulars
234A   (for delay in filing the tax return)
234B   (for shortfall in payment of advance taxes during the tax year)
234C   (for shortfall in installments of advance tax)

        At this time of the year, individual assesses have been busy preparing and filing of tax returns. The
        significance of the due date is that after this date, the tax returns filed will be subjected to 1% penal
        interest under the Income Tax Act, 1961 (the Act).

        The charging of interest on delayed the filing of tax returns and short/delayed payment of taxes are
        mandatory and there are no provisions for reduction or waiver of interest by the tax department (except in
        a very limited circumstances, as empowered to the chief commissioner of income tax) even if the tax
        payer provides a reasonable cause for such defaults. This issue has been a subject matter of debate
        before various courts, including the Supreme Court of India, and time and again courts have held the
        constitutional validity of the mandatory charging of interest under sections 234A, 234B and 234C of the
        Act.

        Income tax for any previous year is chargeable to tax in the assessment following the relevant
        assessment year. However, it is further provided that income tax shall be deducted or paid in advance
        under the provisions of the Act. Therefore, the liability to pay tax for the relevant tax year either by way of
        deduction or as an advance tax has been enshrined in the Act itself. Broadly speaking, interest for
        defaults in payment of taxes is charged from the tax payers under three sections, namely 234A (for delay
        in filing the tax return), 234B (for shortfall in payment of advance taxes during the tax year) and 234C (for
        shortfall in installments of advance tax).

        Interest under section 234A of the Act is payable for the period starting from the due date of filing the tax
        returns up to the date of actual filing, calculated as simple interest at the rate of 1% per month or any part
        of the month.

        At the time of filing the tax returns, the tax payer has to compute the interest on the basis of his/her total
        income as disclosed in the tax returns, which later can be substituted by the tax officer with assessed
        income, if different from the returned income, and additional interest will be charged in the assessment
        order. The important thing to be noted here is that for computing the interest under this section while
        paying self assessment tax under section 140A of the Act, credit can be given only for payments made as
        an advance tax, TDS, or any double taxation relief available under the tax treaty/the Act, whereas any
        other tax payment cannot be taken into account.

        Therefore, where a tax return is filed after the due date and even if whole/part of the taxes have been
        paid before the due date other than by the modes as mentioned above, interest under section 234A of the
        Act is leviable.

        Interest under section 234B of the Act is charged on the shortfall in the total advance tax paid during the
        tax year. The interest under this section is charged at the rate of 1% per month or part of the month from
        April 1 of the date of payment of taxes. For computing this interest as well, the tax payer has to consider
        the tax payable on income as shown in the tax return and adjust taxes paid as TDS, advance tax, double
        taxation relief available under tax treaties/the Act. The tax officer can substitute the tax computed on
        finally assessed income and re-compute the interest payable under section 234B of the Act. Where a part
        payment of taxes has been made, any shortfall in the total tax payable and interest up to such date of
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