A has an outstanding tax of Rs. He does not file his return before the prescribed due date i. Since he missed the actual date for filing the return, interest for 5 months will be charged,. Therefore, Mr. A would now have to pay Rs. If an individual have to pay Rs 10, or more as taxes in a year, advance tax will be applicable. Advance Tax means paying your tax dues on the due dates provided by the income tax department. If advance tax is not paid on time or there is default completely, interest under section B will be levied.
Businessmen, professionals, and salaried employees are liable to pay advance tax, where tax payable amounts to Rs 10, Senior citizens above 60 years and with no income are also exempted under this section. In order to know about calculation of interest under Sections C of Income Tax Act, let us take the help of this example,.
B has total tax liability of Rs. Even though Mr. Assessed tax is Rs 52, However, Mr. B is liable to pay interest under section B. Income tax should be paid on time every financial year to avoid interes on late payment of taxes.
Below mentioned table provides with the due dates for paying advance tax and also interest under section C on such late payment:. In order to know about calculation of interest under Sections C, let us take the help of this example,. Pay all advance tax and dues on time to avoid interest liability. Log in to leave a comment. Delay in filing of Return- From 31st July to 2nd December i. Section B deals with the following two cases-. A When the taxpayer has failed to pay advance tax though he is liable to pay advance tax.
For the Interest calculation under section B, we can understand it with an example. Kiyaan has a total tax liability of Rs. Advance Tax already paid Rs. A Shortfall of Rs. The Interest is taken from April to July because July is the due date month of return filing and here we assumed that the assessee has filed its return in time.
Section C deals with the delayed payment of advance tax installments. For the Interest calculation under section C, we can understand it with an example. Also Read:- Know the complete procedure and provision for advance tax payments. Kiyaan is an assessee whose income tax computed was Rs. The income tax department provides a smooth path for the taxpayer to reduce the burden of payment of tax liability through four installments quarterly.
This example put up as the random situation of tax payment under all installment with a shortfall of Mr. Roshan from New Delhi. Also Read: Income tax rebate. If Mr. After all the explanation what about if you get excel based spreadsheet for calculation. This excel sheet is specifically designed in an excel spreadsheet which is very easy to understand for the taxpayer in different scenarios. You will not only get the outcome but also understand the concept of the section as well as the cause of imposing.
Click here to download A B C interest calculator in excel. Also Read: Tax relief under section 89 1 on salary arrears. What can be done in this case.. Advance tax is paid on the estimation of calculation according to your gross income. Are you sure about this?
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