Section 234A, 234B and 234C of the Income tax Act, 1961 deals with interest for delay in ITR Filing or Short/Non deposit of Advance tax. Interest is payable under section 234A for delay in furnishing of income tax return in time. Interest is also payable under section 234A and 234B for deferring or non-payment of advance tax as required under section 208 of the Income Tax Act, 1961
Due date for filing of Income Tax Return for assessee other than companies and non-audit case is 31st July and 30th September for companies or audit case. If the Income Tax Return is not furnished within the due date as above simple interest under section 234A is payable @ 1% p.m.
CBDT has vide its circular no. 02/2015 dated 10-02-2015 has clarified that
no interest under section 234A of the Act is chargeable on the amount of self-assessment tax paid by the assessee before the due date of filing of return of income. (Read Circular Click Here >>)
Advance tax is payable if the gross tax liability for a year is equal to or more than Rs. 10000/- . If the assessee who is liable to pay advance tax has failed to pay or the advance tax paid is less than 90% of the tax payable then simple interest is payable under section 234B @ 1% p.m.
Advance tax is required to be paid in quarterly installments,. Three for non companies and four installments for companies. If the advance tax installments are not paid as required simple interest is payable under section 234C @ 1% .
With this excel based income tax interest calculator interest payable under all the three sections can be calculated for companies or non companies for Assessment Year 2014-15 and Assessment Year 2015-16.
Users have to only fill the amount of income tax liability and the dates and amount of tax already deposited or tax deducted at source (TDS) and it immediately calculates accurate amount of interest payable under section 234A, 234B and 234C of Income Tax Act, 1961.
It is very simple and user friendly with inbuilt help section and text of the relevant sections have been provided in a pop up box for ready reference.