Where the return of income for any assessment year is furnished after the due date or is not furnished, the assessee shall be liable to pay simple interest at the rate of one per cent for every month or part of a month for the period commencing on the date immediately following the due date upto the date of furnishing the return (in cases where return is furnished after the due date) or upto the end of the Assessment Year (in cases where no return is furnished) on the amount of shortfall in total income tax payable by the assessee.
In simple words, interest @ 1% per month is payable on the amount of income tax paid after the due date for filing of the return.
|For non corporate (Individuals, HUFs, Firms, Co-operatives & Local Authorities) assessees whose accounts are required to be audited||30th September 2016|
|For salary earners and other non corporate assessees whose accounts are not required to be audited||31st July 2016|
An assessee who is liable to pay advance tax has failed to pay such tax or where the advance tax paid by such assessee is less than ninety per cent of the assessed tax, the assessee shall be liable to pay simple interest at the rate of one per cent for every month or part of a month for period from the date on which the payment of advance tax became due on the amount of shortfall in the amount of advance tax paid.
In simple words, interest @ 1% per month is payable on the amount of income tax paid after the end of the financial year.
Interest is payable @ 1% for 3 months on the amount of shortfall in payment of advance tax became due on 15th June (applicable only to Corporate assessees), 15th September (all assesses) and 15th December (all assessees) and interest @ 1% on the amount of shortfall in payment of advance tax became due on 15th March (all assessees).
Please note that in case of salaried employees, the advance tax liability is to be computed on the income other than salary income. TDS deducted by the employer is not to be adjusted against this liability.
|Income Tax Slabs AY 2016-17||Income Tax Calculator AY 2016-17|
|Advance Tax Calculator||Indexed Cost & LTCG Calculator|
|Intt. u/s 234 Calculator||ITR Form no. & Mode of Filing|
|TDS Rates AY 2017-18||TDS Calculator AY 2017-18|
|Allowable Deductions||Incomes Exempt from tax|
|Maximize Tax Savings||Challan 280 in Excel|
|TDS Form 16 in Excel||PPF Calculators|
|Sukanya Samriddhi Calculator||Fillable forms in Excel/Word/PDF|
|Small Savings Calculator||View 26 AS|
|Fillable PAN TAN forms||Fillable VAT forms|
|Fillable Post Office forms||Fillable RTO forms|
|Ramayana Prashnavali||Taxability of Allowances|