Calculation of Interest U/S 234 B & C in Excel

CALCULATION OF INTEREST U/S 234 B & C

IN CASE OF DEFAULT & DEFERMENT IN  PAYMENT OF ADVANCE TAX


FOLLOWING ARE THE DUE DATES OF PAYMENT OF ADVANCE TAX LIABILITY

IN CASE OF ASSESSE OTHER THAN COMPANY

DUE DATE OF INSTALLMENT AMOUNT PAYABLE

ON OR BEFORE 15th SEPTEMBER NOT LESS THAN 30% OF ADVACE TAX LIABILITY

ON OR BEFORE 15th DECEMBER NOT LESS THAN 60% OF ADVACE TAX LIABILITY AS REDUCED BY THE AMOUNT PAID IN EARLIER INSTALLMENT

ON OR BEFORE 15th MARCH 100% OF ADVANCE TAX LIABILITY AS REDSUCED BY THE AMOUNT PAID IN EARLIER INSTALLMENT


IN CASE OF COMPANY ASSESSE

DUE DATE OF INSTALLMENT AMOUNT PAYABLE

ON OR BEFORE 15th JUNE NOT LESS THAN 15% OF ADVACE TAX LIABILITY

ON OR BEFORE 15th SEPTEMBER NOT LESS THAN 45% OF ADVACE TAX LIABILITY AS REDUCED BY THE AMOUNT PAID IN EARLIER INSTALLMENT

ON OR BEFORE 15th DECEMBER NOT LESS THAN 75% OF ADVACE TAX LIABILITY AS REDUCED BY THE AMOUNT PAID IN EARLIER INSTALLMENT

ON OR BEFORE 15th MARCH 100% OF ADVANCE TAX LIABILITY AS REDSUCED BY THE AMOUNT PAID IN EARLIER INSTALLMENT

NOTE1: ADVANCE TAX IS PAID THROUGH CHALLAN NO. 280 UNDER PAYMENT CODE 100%

COMUTATION OF  ADVANCE TAX

INCOME UNDER 5 HEADS OF INCOME XXXX

LESS:- BROUGHT FORWARD LOSS AND ALLOWANCES XXXX

GROSS TOTAL INCOME XXXX

LESS:- CHAPTER VI- A DEDUCTIONS XXXX

ESTIMATED TOTAL INCOME XXXX



INCOME TAX ON ESTIMATEDTOTAL INCOME XXXX

ADD:- SURCHARGE (IF ANY) ON ABOVE ESTIMATED INCOME XXXX

TOTAL TAX PAYABLE XXXX

LESS:- RELIEF UNDER SECTION 89 XXXX

TAX LIABILITY XXXX

ADD:- 2% EDUCATION CESS XXXX

ADD:- 1% SECONDARY HIGHER EDUCATION CESS XXXX

TOTAL TAX LIABILITY XXXX

LESS:- RELIEF OF TAX U/S 90, 90A,91 XXXX

LESS:- MAT CREDIT U/S 115JAA XXXX

LESS:- TDS AS SHOWN IN FORM 16/16A & REFLECTED IN FORM 26AS XXXX

ADVANCE TAX LIABILITY XXXX


NOTE 2 :- ALTHOUGH ADVANCE TAX IS LIABLE TO BE PAID ON ALL INCOME INCLUDING
CAPITAL GAIN IT IS NOT PRACTICALLY POSSIBLE TO ESTIMATE THE CAPITAL GAIN WHICH MAY
IT IS PROVIDED THAT IF ANY SUCH INCOME ARISES AFTER THE DUE DATE OF ANY INSTALLMENT
THEN THE ENTIRE AMOUNT OF TAX PAYABLE ON SUCH CAPITAL GAIN( AFTER CLAIMING
EXEMPTION U/S 54) SHALL BE PAID IN REMAINING INSTALLMENT OF CAPITAL GAIN ARE
DUE. IF THE ENTIRE AMOUNT OF TAX PAYABLE IS SO PAID, THEN NO INTEREST ON LATE  
 PAYMENT WILL BE LEVIED.

INTEREST ON LATE PAYMENT OF ADVACE TAX

INTEREST U/S 234 B :-INTEREST U/S 234B IS PAID IF 90% OF TAX IS NOT PAID BEFORE THE
END OF THE FINANCIAL YEAR I.E DEFAULT IN PAYMENT OF ADVANCE TAX.

INTEREST U/S 234 C :- INTEREST @ 1% IS PAYABLE  IF TAX IS NOT PAID AS PER THE ABOVE
SCHEDULE I.E DEFERMENT IN INSTALLMENT OF ADVANCE TAX.

NOTE 3 :- FOR COMPUTINF INTEREST U/S 234A/ 234B/ 234C & ANY OTHER INTEREST INCOME
TAX  SHALL BE ROUNDED OFF TO NEAREST HUNDRED AND FRACTION OF HUNDRED SHALL BE
IGNORED.


INTEREST U/S 234B ( DEFAULT IN PAYMENT OF TAX)

INTEREST @ 1 % IS PAYABLE IF

(a) ADVANCE TAX PAID DURING THE PREVIOUS YEAR IS  LESS THAN 90% OF ASSESSED TAX*
OR
(b) NO ADVANCE TAX PAID DURING THE YEAR

(* )ASSESSED TAX MEANS:- TAX DETERMINED U/S 143(1) /144 /147 / 153 A XXXX

LESS:- RELIEF OF TAX  U/S 90 XXXX

LESS:- RELIEF OF TAX  U/S 90A XXXX

LESS:- RELIEF OF TAX  U/S 91 XXXX

LESS:- MAT CREDIT U/S 115JAA XXXX

LESS:- TDS/TCS XXXX

ASSESSED TAX XXXX

IN CASE ADVACE TAX PAID BY THE ASSESSE IS MORE THAN HIS ACTUAL INCOME TAX LIABILITY. HE CAN CLAIM REFUND OF
INCOME TAX  BY FURNISHING THE DETAILS OF TAX DEPOSITED IN THE INCOME TAX RETURN



INTEREST U/S 234C (FOR DEFERMENT OF PAYMENT OF TAX)

INTEREST U/S 234 C IS LIABLE TO BE PAID @ 1% PER MONTH IF

1 ADVACE TAX PAID ON OR BEFORE 15th SEPTEMBER IS LESS THAN 30% OF TAX DUE ON RETURNED INCOME
OR
2 ADVACE TAX PAID ON OR BEFORE 15th DECEMBER IS LESS THAN 60% OF TAX DUE ON RETURNED INCOME
OR
3 ADVACE TAX PAID ON OR BEFORE 15th MARCH TAX DUE ON RETURNED INCOME
OR
4 NO TAX HAS BEEN PAID BY THE ASSESSEE


NOTE 4 :- TAX DUE ON RETURNED INCOME MEANS

TAX ON TOTAL INCOME DECLARED IN INCOME TAX RETURN XXXX

LESS:- RELIEF OF TAX  U/S 90 XXXX

LESS:- RELIEF OF TAX  U/S 90A XXXX

LESS:- RELIEF OF TAX  U/S 91 XXXX

LESS:- MAT CREDIT U/S 115JAA XXXX

LESS:- TDS PAID XXXX

TAX DUE ON RETURNED INCOME XXXX


COMPUTATION OF INTEREST U/S 234C FOR LATE PAYMENT OF ADVANCE TAX ( IN CASE OF COMPANY ASSESSEE)

(A.) RATE 1 % PER MONTH SIMPLE INTEREST
PERIOD 3 MONTH
AMOUNT 30% OF” TAX DUE ON RETURNED INCOME” (LESS:- ADVACE TAX PAID ON  OR BEFORE 15th SEPTEMBER)


(B.) RATE 1 % PER MONTH SIMPLE INTEREST
PERIOD 3 MONTH
AMOUNT 60% OF” TAX DUE ON RETURNED INCOME” (LESS:- ADVACE TAX PAID ON  OR BEFORE 15th DEDCEMBER)


(C.) RATE 1 % PER MONTH SIMPLE INTEREST
PERIOD 1 MONTH
AMOUNT TAX DUE ON RETURNED INCOME( LESS:-ADVANCE TAX PAID ON OR BEFORE  15th MARCH)


NOTE 5:- COMPUTATION FOR COMPANIES SHALL BE DONE IN THE SAME MANNER AS FOR THE ASSESSEES OTHER THAN COMPANY
AS SHOWN ABOVE TAKING IN TO ACCOUNT THE DIFFERENCES IN DUE DATE.