Interest for defaults in payment of advance tax – Section 234B

Confused in complicated laws? Take our GST consultation services to get your issues solved from GST experts. Click here to know more.

An assessee who is liable to pay advance tax but failed to pay such tax or tax paid by him is less than 90% of the assessed advance tax, is liable to pay interest under this section.

Rate of Interest – Simple interest @ 1% per month or part of the month is payable on amount of shortfall in payment of advance tax.

Period of Interest – Interest is chargeable from 1st day of the assessment year to the date of regular assessment (date on which self assessment tax is paid) or where income is determined under section 143(1) then to such date.

Amount on which interest is payable – Tax on total income less advance tax paid, TDS or TCS deducted, relief under section 90/90A/91 and MAT credit under section 115JAA.

Case Laws-

Interest under section 234B is automatic even if assessment order does not contain any direction for payment. CIT vs M/s Bhgat Construction Co. Pvt. Ltd. (SC 2015)

Also Read: Advance Tax Calculation and Payment

Confused about complicated laws? Take our GST consultation services to get your issues solved from GST experts. Click here to know more.

Read More Articles

Section 44ADA – Presumptive Taxation Scheme for Professionals

From financial year 2016-17, a new Section 44ADA is introduced for presumptive income for professionals. This section is similar to section 44AD for traders. Under this section professionals such as legal, medical, engineering, architect, accountancy, technical consultancy, interior decoration or any

Read Article »

Registration Under GST

Topic Covered in this Article Persons required to register compulsorily Documents Required for Registration Fees for Registration Voluntary Registration Time Limit for Registration Effective Date of Registration Requirements for Registration Can a person take more than one GSTIN Things that

Read Article »

GST on Import

Article 269A of constitution mandates that import of goods or services in India is considered as Inter-state trade. Therefore, import of goods or services is considered as interstate supply and is liable for payment of IGST. IGST on the import

Read Article »

Table of Contents

Subscribe

We will send updates relating to GST only

(No spam, you can unsubscribe anytime)