234 A , B C .pdf income tax calculation

234 a , b , c income tax calculation
Here it is present how to calculate interest in this case

1. What is interest us 244a?

• Section 244A is for Interest on Refund . When refund is of tax other than advance tax paid or TDS or TCS
the interest is payable at the rate of 0.5 percent per month or part of month(If I get refund even on 1
st
date
of the month, I will get Interest for the full month) from date of payment of tax or penalty to the date of
grant of refund…
• Taxability of Income Tax Refund.
Refund will not be taxable in your hands as it is only the receipt of
excess taxes and not income earned. Income earned is taxable and not tax refunds. However, if you have
received interest on tax then this interest portion is taxable according to slab rates applicable to you.
How long does it take to get income tax refund?
• However, no interest is paid if the refund amount is less than 10% of the tax determined.
• W.e.f 01/06/2016, Date of S.A. tax paid or return filed, whichever is late, starting from that date to the grant of
refund, Interest U/s 244a will be given
Appeal effect is to be given within 90 days for the order passed U/s 250,254,260,263 or 264 etc…This limit can be
extended to 6 months by Pr.CIT in special causes if asked by AO…..Any refund arised due to that, the same will be
granted with 6% interest but for the delay, Interest will be paid, 9%

2. Calculate 244A in the case of Mr.”A” on the base of following
details
Due date of filing the return for AY 2023-24 31/07/2023
Assessee filed return 22/07/2023
Taxable Income7,50,000
Tax on above 65,000
TDS & Advance Tax68,000
Refund claimed by the assessee 3,000
•
Assessment under section 143(1) completed on 22/09/2023 ac cepting the
total income as it is and no addition has been made in the said c ase.
Calculate Interest under section 244A
In the above case, if the amount of income tax refund due to the
assessee as
determined under section 143(1) or on regular assessment [u /s 143(3) or u/s
144] is less than 10 per cent of the tax liability of the assess ee, thenno interest
undersection 244A on the income tax refund shall be payable .

3. 4% CESS WAS W.E.F AY 2019-20

4. Calculate 244A in the case of Mr.”A” on the base of
following details
Due date of filing the return for AY 2019-20 31/07/2023
Assessee filed return 22/07/2023
Taxable Income7,50,000
Tax on above 65,000
TDS & Advance Tax75,000
Refund claimed by the assessee 10,000
•Assessment under section 143(1) completed on 22/09/2023 ac cepting the
total income as it is and no addition has been made in the said c ase.
Calculate Interest under section 244A
Interest to be calculated from 01/04/2023 to the completion of
assessment I.E. upto 22/09/2023=9 Months =
10000*6*0.5%=300Rs. Refund will be deposited into assesse e’s
acount to the tune of Rs.10,300/-

What is interest us 2234D ?

• Section 244A is for Interest on Refund . When refund is of tax other than advance tax paid or TDS or TCS
the interest is payable at the rate of 0.5 percent per month or part of month(If I get refund even on 1
st
date
of the month, I will get Interest for the full month) from date of payment of tax or penalty to the date of
grant of refund…
• Taxability of Income Tax Refund.
Refund will not be taxable in your hands as it is only the receipt of
excess taxes and not income earned. Income earned is taxable and not tax refunds. However, if you have
received interest on tax then this interest portion is taxable according to slab rates applicable to you.
Interest under section 234D of the Act & Its calculation

5. • the refund liable for interest under Section 234D, any fraction of 100 shall be ignored. Thus, Rs 60 will be
ignored and the balance amount will come to Rs 5,600. The interest will be calculated on Rs 5,600. He has kept
the excess money with him for 5 months and 17 days before paying it to the IT department. Under Section
119A, the interest for this can be calculated as given below:Consider that Mr A has received an excess refund of
Rs 5,660 upon intimation under Section 143(1). While computing
• 5 months and 17 days will be rounded off to 6 full months
Interest under section 234D of the Act & its calculation
• The interest is calculated at the rate of 0.5% per month; 0.05 * Rs 5,600 * 6 = Rs 168
• An interest amount that is not a multiple of Rs 100 will be rounded off to the nearest multiple of Rs 100. In this
case, the nearest multiple is Rs 200
• Mr A must pay Rs 200 as the interest for the excess refund. That is, a total amount of Rs 5,800 must be paid
back to the IT department under Section 234D of the Act.
6. Mr A aged 40 years is a professional having receipts of Rs. 45 Laks for F.Y. 2021-22 He files his return of income
for A.y 2022-23 on December 17,2022 at Return Income of Rs. 14,50,000. The assessed income is Rs. 16,70,000
which was completed on March 15, 2023. What is the interest liability u/s 234A He paid advance tax of Rs 1,00,000
and TDS of Rs. 20,500 was done on his income.
Ans:

Name of the Assessee: Mr.A, Status: Individual, A.Y.2022-23.
Calculation of 234A: Assessed Income 16,70,000/-*
Total Tax 3,26,040 /- Less: TDS (-)20,500/- Less: Advance Tax Paid (-)1,00,000/- Shortfall 2,05,540/- 1% of next from due date of filing the return to the date of return filed (From 1/8/2022 to
31/12/2022)=5% of 2,05,540/-
Rs.10,277/-

6. Assessed Income is that Income which comes after deduction of SD & Ch-VI while GTI is that Income which comes after deduction of
SD but before Ch-VIA

234-A
Tax on Assessed Income Total Tax (Including Cess)
Less: TDS
Less: Advance Tax
Shortfall………
1
% of next from due date
of filing the return to the date of return
filed

7. Chart of 234C
Interest under section 234C is always calculated on RI
Due Date On
or before
Tax(after TDS) to be
paid in %
Actual Paid
(Progressive)
Shortfall
(2-3=4)
3:3:3:1 of Column
number 4%
1 2 3 4 5
15/6/ 15% of Tax Payable 3% of col.-4
(If paid less than12%)
15/9 45% Tax Payable 3% of col.-4
(If paid less than 36%)
15/12 75% Tax Payable 3% of col.-4
(If paid less than 75%)
15/03 100% Tax Payable 1% of col.-4
(If paid less than 100%)

8. Remember in 234 B & C
234B 234B 234C
• If assessee has paid
more than 90% of Tax,
No 234B will be
applicable……
• 234B A.I.Tax –TDS-Ad.
Tax
• Always on RI
• RI Tax – TDS
• 12 % and 36 %
Shortfall

9. 2.5 to 5.0 12500
5 TO 10 100000 670000*.30 201000 313500 12540 326040

10. Q.7. Following information furnished in respect of Mr. L for A.Y. 2022-23:
Due date for filling of return of income 31.08.2022
Return filed on 15.09.2022
Total Income 6,97,500
TDS 4,000
Advance Tax paid
On 16.09.2021 10,000
On 15.12.2021 10,000
On 01.01.2022 10,000
On 17.03.2022 10,100
Calculate interest payable u/s 234C
Ans:

Name of the Assessee: Mr.L
Status: Individual
A.Y.2022-23.

Assessed Income

697500/
-

Total Tax
(12500+39500=52000+2080=54080)

54,080/
-

Less: TDS

4,000/
-

Net Tax Payable

50,080/
-

12. On or before

Tax(after TDS) to be paid in %
(234C is always
calculated on R.I.)
Actual Paid

(Progressive)
Shortfall

(2-3=4)
Interest (Rs.)

(1)

(2)

(3)

(4)


15/06/2021

15% of 50080 Tax Payable
(7512/-)
0

7512

3% of col.(4)=225/
-

15/09/2021

45% of 50080 Tax payable (22536)
0

22536

3% of col.(4) =6 76/
-

15/12/2021

75% of 50080 Tax payable
(37560)
20000

17560

3% of col.(4) = 526/

15/03/202
2

100% Tax Payable

(50080/-)
30000

20080

1% of col.(4)=200/
-

(If paid less than
100%)
Total Interest Payable u/s 234C: 1027/-
Q.5.from the following information, compute the interest payable by individual 234A:

Assessment Year

202
2
-
23


Date of filing of Return:

19.03.202
3


Due date of filing of Return :

30.09.202
2


Tax deducted at source

15000/
-

Advance tax paid

18000/
-

Self assessment tax paid



2000/
-

Tax determined on regular income

68000/
-

13. Ans:
Name of the Assessee : Mr. X,

Status:Indl

Assessment Year: 202
2
-
23


Calculation of interest u/s 234A
Particulars Amount

Tax determined on regular income

68000

Less: TDS 15000

Advance tax 18000

33000

Balance tax 35000

Period of default from 01.10.2022 to 19.03.2023 = 6 month
Rate of interest @ 1% per month or part of month for the period of default
So, Interest u/s 234A is (35000 x1% x 6)

2100