957(Income Tax) What will happen if taxpayer dont pay advance tax? Narration - By Amlan Dutta Solution - https://youtube/watch?v=347vL-o7j8Y Say for this tut , the previous year 2013 14 and assessment year 2014 15 ...income head - FD interest income -10 lakhs Deductions under section 80 = 0 So , my total income = 10 lacs so tax applicable as per slabs is 1.33 lacs But bank deducts TDS only as per slabs i.e 10 % u/s 194 A i.e 1 lac So , ab kya hoga ...hona kya hai , you will have to pay the difference 0.33 lakhs in installements in advance Khair yah sab chodo, waht if i dont pay ? Good , lets come to the point If you dont pay , just like anybody who you owe money will charge interest on the sum , the revenue will charge interest on such sum Two draculean sections make their filmy entry 234 B and 234 C Think logically , the year ends at 31st March 2014 , so whenver you pay , the interest will calculate from 1st Apruil 2014 ...well that is 234 B ...the figures are sad , still for your info , it is 1 % per month on unpaid taxes Oh hoooooooo....lest i forget 234 C , it is at 1 % on unpaid taxes but for something which you will surely forget So lets do this together a taxpayer has to pay 30 % by sept 15th , 60 % by 15th dec and 100 % by 15th march Underpayment of taxes leads to penal interest under this section How we calculate and everything is sad and i explain that in the video ! Some people ask what if no taxes are due ...Do i have to still pay advance tax no ! Obviously no and no penal interest shall apply , note that penal interest is on unpaid taxes ...so if taxes due is 0 or proper TDS has been done , surely penal interest cant apply and even if it does 1 % of 0 is 0 Rest , enjoy the tutorial! Peace , Amlan Dutta
Posted on: Wed, 17 Sep 2014 15:08:07 +0000
Trending Topics
Recently Viewed Topics
© 2015