Section 234C of ITA, 1961 : Section 234C: Interest For Deferment Of Advance Tax
ITA, 1961
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Explanation using Example
Let's say Mr. Sharma is a salaried employee and has some income from a rental property. For the financial year 2022-2023, his estimated tax liability is ₹1,00,000. According to the advance tax payment schedule, he should pay at least 15% (₹15,000) by the 15th of June, 45% (₹45,000) by the 15th of September, 75% (₹75,000) by the 15th of December, and 100% (₹1,00,000) by the 15th of March.
However, Mr. Sharma pays ₹10,000 by June 15, which is ₹5,000 less than what is required. He pays ₹40,000 by September 15, which is ₹5,000 less than the cumulative required amount by that date. By December 15, he pays an...
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