Document Modified 11/04/2016

Interest u/s 234 A, B and C Calculator for
Individuals, HUFs, Firms, etc. : AY 2016-17

Calculator
Information - Section 234 A
Information - Section 234 B
Information - Section 234 C

Interest u/s 234 A, B and C Calculator for Non-corporate assessees

Enter data in applicable unshaded cells
Details of Tax paid and Income Tax return
1. Select Due Date for filing of Income Tax Return
2. Total Tax Liability for the Assessment Year
3. Amount of TDS deducted / TCS collected and utilized for the year
4. Advance Tax paid upto 15th September 2015
5. Advance Tax paid during 16th September 2015 to 15th December 2015
6. Advance Tax paid during 16th December 2015 to 15th March 2016
7. Advance Tax paid during 15th March 2016 to 31st March 2016
8. Amount of shortfall in tax payment upto 31st March 2016
9. Income Tax Shortfall, if any, (shown at 8 above) paid on or before
10. Income Tax Return filed on or before
Calculation of Interest Payable u/s 234 A
Number of months for which interest is payable on shortfall amount @ 1% per month
Interest Payable under Section 234 A
Calculation of Interest Payable u/s 234 B
Number of months for which interest is payable on shortfall amount @ 1% per month
Interest Payable under Section 234 B
Calculation of Interest Payable u/s 234 C
Advance Tax Payable upto 15th September 2015 (At least 30% of Total Tax Liability)
Shortfall in Advance Tax payment
Interest Payable u/s 234 C on shortfall in tax payment upto 15th Sept. 2015
Advance Tax Payable upto 15th December 2015 (At least 60% of Total Tax Liability)
Shortfall in Advance Tax payment
Interest Payable u/s 234 C on shortfall in tax payment upto 15th Dec. 2015
Advance Tax Payable upto 15th March 2016 (100% of Total Tax Liability)
Shortfall in Advance Tax payment
Interest Payable u/s 234 C on shortfall in tax payment upto 15th March 2016
Total Interest payable u/s 234 C
Total Interest payable u/s 234 A, 234 B and 234 C

Section 234 A : Interest payable for default in furnishing the return of income

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.

Due Dates for Filing of Returns for AY 2016-17 (FY 2015-16)

For non corporate (Individuals, HUFs, Firms, Co-operatives & Local Authorities) assessees whose accounts are required to be audited30th September 2016
For salary earners and other non corporate assessees whose accounts are not required to be audited31st July 2016

Section 234 B : Interest payable for default in payment of advance tax

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.

Section 234 C : Interest payable for deferment of advance tax

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.

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