Interest Section 234A section 234B section 234C detail and calculation Method

Advance tax challan , itns 280, interest 234a, interest 234B , interest 234C , advancer tax interest calculator , interest on late deposit of advance tax , advance tax due dates , advance tax cut off amount , advance tax cut off after tds or not . capital gain exemption of advance tax . advance tax on capital gain applicable prospectively . Advance tax for person other than companies is payable if tax due in a financial year is more than 10000 before the TDS amount .Such person have to pay advance tax in three installments. 30% of tax assessed =15 September of previous year(for Ay 2012-13date is 15.09.2011) 60% of tax assessed=15 December of previous year ( For Ay 2012-13 Date is 15.12.2011 100% of tax assessed = 15 March of previous year (For Ay 2012-13 date is 15.03.2012) Here tax Assessed means = Tax due minus Tax deducted at sources.Please note that to check 10000 cut off limit you have to consider full amount of tax due but for interest calculation amount is to be taken is total tax due minus tax deducted/ collected at source(TDS/TCS).

:: Section 234A - Interest for default in furnishing return of Income ::
(A)
Where the return of income for any Assessment year is furnished after the due date specified in section 139(1) or is not furnished the assessee shall be liable to pay simple Interest @ 1% for every month or part of a month.
Section 139(1) specifies due dates for filing voluntary returns of a company, a person (other than a company), or any other assessee.
(B)
The interest shall be payable for the period commencing from the date immediately following the due date and -
(1) Where the return is furnished after due date, ending on the date of furnishing the return; or
(2) Where no return has been furnished, ending on the date of completion of Assessment u/s 144. (Best Judge Assessment)
(C)
The Interest shall be calculated on amount of tax on total income as determined u/s 143(1) or on regular assessment as reduced by the advance tax pain and any tax deducted or collected at source and relief from double taxation u/s 90, 90A or deduction from double taxation u/s 91 and amount of MAT credit allowed to be set off u/s 115JAA.
: Rule 119A :
Any fraction beyond the nearest multiple of`100/- will be ignored in the calculation of interest payable or receivable by the assessee.
:: Section 234B - Interest for defaults in payment of Advance tax ::
(A)
Where in any financial year, an assessee who is liable to pay advance tax u/s. 208 has failed to pay such tax or the advance tax paid by such assessee is less than 90% of the assessed tax, the assessee shall be liable to pay simple interest @ 1% for every month or part of a month.
(B)
The period for which interest is payable would be the period from the first day of April next following such financial year to the date of determination of total income u/s. 143(1). However, if regular assessment u/s. 143(3) is completed, then interest is chargeble up to the date of regular assessment.
(C)
The amount on which interest shall be calculated shall be the amount equal to the assessed tax or on the amount by which the advance tax paid falls short of the assessed tax.
:: Section 234C - Interest for deferment of Advance tax ::
(A)In the case of companies calculation of interest u/s. 234C shall be as follows: Where the advance tax paid by the company on its current income on or before 15th June, 15th September, 15th December is less than 15%, 45% and 75% respectively on the returned income, then the company shall be liable to pay simple interest at the rate of 1% per month for a period of three months on the amount of the shortfall. However, in the case of company assessee, leverage has been provided as to the first 2 installments, falling due on 15th June & 15th September. A concessional rate of 12% and 36% has been provided as against 15% and 45% respectively. In case the companies does not pay even 12% or 36% as the case may be, interest u/s. 234C shall be levied on the entire sum of advance tax payable based on 15% and 45% for the respective installments of 15th June and 15th September.(B)For other assessee, the existing pattern of calculation will apply as indicated below:Where in any financial year the assessee who is liable to pay advance tax u/s. 208 has failed to pay such tax or the advance tax paid by the assessee on his current income:-(1) On or before 15th September is less than 30% of the tax due on the returned income;(2) On or before 15th December is less than 60% of the tax due on the returned income, then the assessee shall be liable to pay simple interest @ 1% per month on the shortfall for a period of 3 Months on the amount of such shortfall (i.e. 3%)(C)Where the whole amount of advance tax paid by any assessee on or before 15th March is less than the tax due on the income returned then the assessee shall be liable to pay simple interest @ 1% on the amount of shortfall from the tax due on the returned income. This applies to companies as well as to other assessees.(D)If the short fall in the payment of the tax due on the returned income is on account of underestimation or failure to estimate -(1) Capital gains(2) Winnings from lotteries, crossword puzzles, races (including horse races), card games and any other activity in the nature of gambling, betting etc.,and if the assessee has paid the amount of tax payable in respect of the above mentioned income as part of the remaining installments of advance tax which are due or where no such installments are due, by the 31st March of the financial year, no interest shall be leviable in respect of such shortfall.(E)"Tax due on the returned income" means the tax chargeable on the total income declared in the return of income furnished by the assessee for the assessment year commencing on the 1st day of April immediately following the financial year in which the advance tax is paid or payable as reduced by the amount of tax deductible or collectible at source on any income which is subject to such deduction or collection and which is taken into account in computing such total income. (Explanation to Section 234C).

How to Check Income Tax Refund Status Online

You have filed your Income Tax Returns for the year and are eagerly awaiting your refund. Very often this wait could get quite painful. Weeks pass by, and tax payers are seldom aware of the status of their ITR, and as to when their refund would be sent to them. To solve such concerns, the Income Tax Department has introduced online availability of information regarding one’s tax refund. With the click of a mouse, you could now check the status of your income tax refund online. It is a quick, easy and safe way to know the status. Here is how you go about it.

              

The Refund Banker Scheme

Titled the Refund Banker Scheme, the TIN-NSDL website provides income tax refund status from assessment year 1998-99 to 2010-11. Currently this scheme is restricted to non-corporate tax assessees in Delhi, Mumbai, Kolkata, Chennai, Bangalore, Bhubaneswar, Ahmadabad, Hyderabad, Pune, Patna, Cochin, Trivandrum, Chandigarh, Allahabad, and Kanpur, but should be extended to other cities soon. The whole refund process would be handled by State Bank of India.

   

Checking Your Refund Status Online

Here is how you go about it.

• Log in to the NSDL website https://tin.tin.nsdl.com/oltas/refundstatuslogin.html.
• Enter your Permanent Account Number (PAN) in the available box. Choose the assessment year for which you desire to know the status and then click on submit. TThe NSDL website is a secure website, so one need not worry while entering sensitive information.
• If your refund has already been sent to the refund banker i.e. to State Bank of India, the display would be something similar to the below image. State Bank of India transfers refunds to tax payers either through ECS, or by way of a cheque.

Mode of Payment	Reference Number	Status	Date
ECS	1122435095	Refund is already credited to your bank, please contact your bank	Mar 22, 20

*Data in the table is for illustration purpose only

   

• In case where State Bank of India is yet to receive funds from the IT department, you’ll see the result as below.

Remember: The status of the refund would be available for tax payers, only 10 days after the refund has been sent by the Assessing Officer to the refund banker.

  

Modes of Income Tax Refund Payment

Under the Refund Banker Scheme, there are two options to receive the income tax refund, either by way of ECS or through post. For all ECS mode of payment, refund would be directly credited into the bank account. Thus, it is vital to provide accurate details of bank account number, bank name, branch, IFSC and MICR code, at the time of filing IT returns. If such details are not provided with accurately, a cheque would be sent by State Bank of India.

  

What do I do if I do not receive the Tax Refund?

If you haven’t received your tax refund, within a maximum of one year from the date of filing the tax return, you could visit the tax department’s office for the follow up of the refund, or send a grievance letter addressed to the concerned Income Tax Assessing Officer, with the copy of the tax return acknowledgement.

For severe delays, a letter could be addressed to the Jurisdictional Chief Commissioner of the Income Tax, with a copy to the Grievance Cell and the concerned Income Tax Officer. Attach copies of any previous letters which may have been written to the Income Tax Assessing Officer, along with a copy of the tax return filed.

   

Keep in Mind….

• Refund status can be viewed only if you have received an acknowledgement from the IT department of having received the ITR form.
• Before logging in with your PAN details, check if you are using the secure NSDL website. The NSDL website is encrypted and authenticated by Entrust.net. Check for this secure sign before logging in. You are also recommended to close the browser immediately after you finish checking your tax refund status.

Wrongly filed tax returns - Revise Tax Return

If an individual has already filed the income tax return and subsequently discover any omission or wrong statement therein, he can re-file the return with necessary modification. This re-filing of the income tax return is referred to as Revised Return. The process for revising the return is very simple. Please remember that the process outlined below is applicable if you had filed the original return online.

  

Rules related to Revised Return

• Revised return can be filed for any previous year at any time before the expiry of 1 year from the end of the relevant assessment year or before completion of the assessment whichever is earlier. For this financial year (2010-11), you can file the revised return till March 31st, 2012
• However, if the income tax department completes the assessment of your return earlier, then a revised return cannot be filed.
• Revised return can be filed only if the original return was filed before due date. Thus if a return is filed after a due date then it cannot be revised
• A loss return filed within time can also be revised and in such case loss as per the revised is carried forward
• One should have acknowledgement number and date of filing the original return in order to file a revised return
• Return filed in response to the notice u/s 148 can also be revised. It should be noted that notice u/s 148 is issued in respect of the escaped income in the respective assessment year
• In case of concealment of income and furnishing of inaccurate information in income tax return an individual will be penalized

Filing Tax Return after the Deadline of 31st July

Lot of people miss the deadline every year due to lack of time or plain laziness. Did you miss it too? In case you have, do not worry, you can still file the belated return.  As a tax payer, you are likely to fall under one of these 4 categories. The associated rules and implications are outlined below.

         

Case 1: No pending Tax Liability

Cases where all the taxes has been paid through TDS or advance tax and you don’t owe any more to the tax department. This is the safest situation. The Income Tax return for any assessment year can be filed till the end of that assessment year without any penalty. If it is filed after the end of the assessment year, there is a lump sum penalty of Rs. 5,000.

        

For Example, for the current assessment year 2011-12, the deadline for filing the return is 31^st July,2011, if you missed deadline then you can file the belated return till March 31^st 2012 without any penalty. However, if the return after March 31^st 2012 then you will be subjected to a penalty of Rs. 5,000 which is dependent upon the discretion of the assessing officer. It has been noticed that the fine is usually not levied for online return filing.

  

Case 2: Tax Liability Exists

This is the case where you still owe taxes to the Govt. It can happen due to many reasons. For example if you have income from other sources, you have worked in more than 1 company etc. In this case the basic rule remains same i.e. the Income Tax return for any assessment year can be filed till the end of that assessment year without any penalty. You will be liable to pay a penalty of 1% interest on the balance tax payable.

Let us understand this case with an example:

Mr. X’s Tax Liability (Net Tax Payable) be Rs.70,000

TDS deducted by employer Rs. 55,000

Advance/Self Assessment tax paid be Rs.8,000

Balance Tax payable by Mr. X is Rs. 7,000 (70,000 - 55,000 - 8,000)

Suppose Mr.X files the return before the end of the assessment year on 15^th October, 2011 (i.e.before March 31^st, 2012). In this case Mr.X would be filing the return 3 months late.  Tax Payable is 7,210 {7,000+3 %( 7,000)}

   

Suppose Mr.X files the return after the end of the assessment year on July 18, 2012 (i.e. after March 31^st, 2012). In this case, he will liable to a penalty of Rs. 5000 along with the penalty of 1% on balance tax payable for 12 months (August,2011 to July,2012).

Tax Payable is 12,840 {7,000+(12%(7,000)+5,000}

These rules come under section 234 and there can be multiple components of the interest depending on the actual dates of payment of advance taxes. If you owe taxes, you can calculate interest levied with thiscalculator

  

Case 3: You have a Tax Refund

If you have any Tax refund and you can file the return even after 31st July without any issue. The only disadvantage will be that your return may be processed late which may delay the refund process.

Case 4: You have carry forward losses

Irrespective of the fact whether you have tax liability or not, if you do file your income tax return by deadline (i.e. July 31^st) then you cannot carry forward the loss of that year. Thus you would lose the benefit of set off of these losses against the income of next year. However, there is an exception to this rule i.e. this rule doesn’t apply to loss from house property, which means this loss can be carried forward even if the income tax return is filed after the deadline.

Important points

· Belated return (Return filed after the due date) cannot be revised

· Some of the Deductions u/s 80 is not available for late return

Conclusion:

Filing a return on time is always a good habit which will keep you away from tax implications especially when you have Tax Liability, Carry Forward Losses and Tax Refund etc. However, if you have missed filing the return, go ahead and file your return now right away.

Did you buy a house?

Well if your answer is yes then you can possibly avail huge deduction on your taxable income.

Income Tax Act allows you to avail 2 kinds of deductions when you invest in buying a house.

1. Interest paid on the loan amount

• Time period when it can be availed: For 5 years, starting from the year of completion
• Maximum Amount Allowed = Rs 1,50,000.
• Where does it go in Income Tax Head: Under Income from House Property.

In case you paid interest during construction phase, you can take its benefit when the house is complete.

2. Principal Amount Paid

• Time period when it can be availed: For 5 years, starting from the year of completion
• Maximum Amount Allowed = Rs 1,00,000
• Where does it go in Income Tax Head: Under Sec 80C Deductions.

In total, you can avail the whopping amount of Rs 2,50,000.

How to save tax on salary?

Income Tax Act gives salaried people many ways of saving taxes on Salary:

• Do you stay with parents?
  • You can pay them house rent. 
• Did you buy a house recently?
  • You can avail the deduction of upto Rs 1,50,000 on your taxable income.
• Do you have school going children?
  • You can avail the tuition fees as Deductions under Sec 80C upto Rs 100000.
• Do you pay medical premium for your parents/family?
  • You can avail this as deductions under Sec 80D upto Rs 35,000.
• Did you pay some medical bills this year?
  • If you get medical allowance from your employer then you can claim deduction upto Rs 15,000.

Guide to printing and sending ITR-V to CPC - Bangalore

After receiving your ITR-V (acknowledgement), you have to send it to CPC, Bangalore within 120 days of e-filing your Income Tax return.
ITR-V is a one page document, which you need to sign in BLUE INK and send via ordinary post or speed post. You cannot courier the ITR-V.
You do NOT need to send any supporting documents along with the ITR-V. Just the one page signed ITR-V.
We strongly recommend that you send your ITR-V at the earliest for your tax refund processing. Don't forget, ok?

Address of CPC - Bangalore :
Post Bag No.1,
Electronic City Post Office,
Bengaluru, Karnataka-560100

Detailed instructions provided by Income Tax Department

1. Please use Ink Jet /Laser printer to print the ITR-V Form.
2. Avoid printing on Dot Matrix printer.
3. The ITR-V Form should be printed only in black ink.
4. Do not use any other ink option to print ITR V.
5. Ensure that print out is clear and not light print/faded copy.
6. Please do not print any water marks on ITR-V. The only permissible watermark is that of "Income tax Department" which is printed automatically on each ITR-V.
7. The document that is mailed to CPC should be signed in original in BLUE INK.
8. Photocopy of signatures will not be accepted.
9. The signatures or any handwritten text should not be written on Bar code.
10. Bar code and numbers below barcode should be clearly visible.
11. Only A4 size white paper should be used.
12. Avoid typing anything at the back of the paper.
13. Perforated paper or any other size paper should be avoided.
14. Do not use stapler on ITR V acknowledgement.
15. In case you are submitting original and revised returns, do not print them back to back. Use two separate papers for printing ITR-Vs separately.
16. More than one ITR-V can be sent in the same envelope.
17. Please do not submit any annexures, covering letter, pre stamped envelopes etc. along with ITR-V.
18. The ITR-V form is required to be sent to Post Bag No.1, Electronic City Post Office, Bengaluru, Karnataka-560100, by ordinary post or speedpost.
19. ITR-Vs that do not conform to the above specifications may get rejected or acknowledgement of receipt may get delayed.