Things to Know about Interest u/s 234b

Are you facing any doubts about your finances? Do you think that you lack information related to incomes, interests and tax and all? Well, you should get equipped with the right information and only then you can make the best of your deeds.

Do you want to know about interest u/s 234b or anything else but finding no valid data? You must be careful about your taxation because wrong tasks can land you in a problem. The point is a discipline in the realm of income tax return is absolutely important. Failing which, you might get accountable to file extra penalties on the amount due. However, there are myriad matters that can end up in the failure of tax deposits. These matters might be related to individuals or companies. For companies, it might emerge or occur because of failure to deposit advance tax or payment of tax that is less than the real tax liability.

In case of an individual, if he or she does not deposit the tax at the correct time or does not cater for FORM 16 to present employer after a change of his company, he shall be liable for interest on tax payable. This is even known as default in furnishing the income. These penalties are smacked under Section 234A, Section 234B and that of Section 234C.

Section 234A:  It is the interest for defaults in furnishing return of the income. The IT Act has formed up provisions for a penalty of one percent every month or part of the month on the sum of tax payable. This interest is designed from the due date to the date of filing the income tax return.

Talking about Section 234B, it is interest for defaults in expense or payment of advance tax. This is the penalty that provision activates in two instances:

• The assessee was accountable to pay advance tax but failed to submit that.
• In case the amount submitted was less than ninety percent of the tax to be submitted.

Remember that in both the mentioned instances, the assessee is going to be levied a general Interest @ one percent per month or part of the month. You must keep in mind that, if you submit the advance tax which was more than ninety percent of the total tax, then no interest is going to be charged from you. This interest is punishable from 1st April of that Assessment Year. It might even be charged from the start date of the assessment year to the date of determination of complete income under sub-section (1) of section 143 and wherein a general assessment is formed, to the date of such general assessment, on the amount that is equal to the measured tax or on the sum by which the advance tax got paid as aforesaid falls short of measured tax.

Conclusion

Thus, the point is clear that you must be careful about these taxes and the penalties they have. Whether dd charges in sbi or anything else, make sure that you are informed. A single error and you might end up with a health problem.