Advance Tax
Solution 01
Computation of Tax Liability on PGBP income of 11,00,000 (Old Regime)
Particulars Amount
Tax on First 10,00,000 @slab rate 1,12,500
Tax on balance 1,00,000 @30% 30,000
Total 1,42,500
(+) Health and Education cess @ 4% 5,700
Tax liability 1,48,200
Computation of Tax Liability on 14,00,000 (Old Regime)
Particulars Amount
Tax on 11,00,000 (1,12,500+30,000) 1,42,500
Tax on LTCG 3,00,[email protected]% 37,500
Total 1,80,000
(+) Health and Education cess @ 4% 7,200
Tax liability 1,87,200
Computation of interest u/s 234C
Installment Advance Tax due Adv. Tax % of Default Interest
Deposited Adv. Tax
15/06/24 148200x15%=22230 15000 10.12% 7230 7200 x 1% x 3 = 216
15/09/24 148200x45%=66690 45000 30.3% 21690 21600 x 1% x 3 =
648
15/12/24 148200x75%=111150 95000 - 16150 16100 x 1% x 3 =
483
15/03/25 210600x100%=210600 170000 - 40600 40600 x 1% x 1 =
406
Interest u/s 234C 1753
Interest u/s 234B
% of Advance Tax = 1,70,000/210600x100 = 80.72%
As advance tax paid is less than 90% of tax liability therefore Interest u/s 234B shall be
charged
Default Period = 01/04/25 – 10/12/25 = 9 months
Interest u/s 234B = 40,600 x 1% x 9 = 3,654
Interest u/s 234A
Default Period = 01/08/25 – 10/12/25 = 5 months
Interest u/s 234A = 40,600 x 1% x 5 = 2030
Solution 02
Computation of interest u/s 234C
Installment Advance Tax due Adv. Tax Deposited % of Adv. Default Interest
Tax
15/06/24 10,00,000x15%=1,50,0 440000x15%=66000 6.6% 84000 84000x1%x3=
00 2520
15/09/24 10,00,000x45%=4,50,0 440000x45%=19800 19.8% 252000 252000x1%x3
00 0 =7560
15/12/24 10,00,000x75%=7,50,0 440000x75%=33000 - 420000 420000x1%x3
00 0 =12600
15/03/24 10,00,000x100%=10,00 440000x100%=4400 - 560000 560000x1%x1
,000 00 =5600
Interest u/s 234C 28,280
Interest u/s 234B
% of Advance Tax = 440000/1000000x100 = 44%
As advance tax paid is less than 90% of tax liability therefore Interest u/s 234B shall be
charged
Default Period = 01/04/25 – 02/01/26 = 10 months
Interest u/s 234B = 5,60,000 x 1% x 10 = 56,000
Interest u/s 234A
Default Period = 01/11/25 – 02/01/26 = 3 months
Interest u/s 234A = 5,60,000 x 1% x 3 = 16,800
Solution 03
Computation of interest u/s 234C
Installm Advance Tax due Adv. Tax % of Adv. Default Interest
ent Deposited Tax
15/06/24 7,00,000x15% = 50,000 7.14% 55,000 55,000x1%x3=1650
1,05,000
15/09/24 7,00,000x45% = 1,50,000 21.43% 1,65,000 165000x1%x3=4950
3,15,000
15/12/24 7,00,000x75% = 3,00,000 - 2,25,000 2,25,000x1%x3=6750
5,25,000
15/03/24 7,00,000x100% = 6,00,000 - 1,00,000 100000x1%x1=1000
7,00,000
Interest u/s 234C 14,350
Interest u/s 234B
% of Advance Tax = 600000/700000x100 = 85.71%
As advance tax paid is less than 90% of tax liability therefore Interest u/s 234B shall be
charged
Default Period = 01/04/25 – 10/12/25 = 9 months
Interest u/s 234B = 1,00,000 x 1% x 9 = 9,000
Interest u/s 234A
Default Period = 01/11/25 – 10/12/25 = 2 months
Interest u/s 234A = 1,00,000 x 1% x 2 = 2,000
Solution 04
Computation of Total Income of Mrs. Ram
Particulars Amount
Under head House property 18,00,000
Under head other sources
Gift from Husband’s sister NIL
Gift from Sister’s Husband NIL
Gift from Sister’s Mother in Law 1,20,000 1,20,000
GTI/Total Income 19,20,000
Computation of Tax Liability (Old Regime)
Particulars Amount
1. Tax on Total income incl. agricultural income i.e. 23,20,000
Tax on First 10,00,000 @slab rate 1,12,500
Tax on balance 13,20,000 @30% 3,96,000
Total(A) 5,08,500
2. Tax on basic exemption limit and agricultural income i.e.
6,50,000
Tax on First 5,00,000 12,500
Tax on balance 1,50,000 @20% 30,000
Total(B) 42,500
Tax (A-B) 4,66,000
(+) Health and Education cess @ 4% 18640
Tax liability 4,84,640
Computation of interest u/s 234C
Installment Advance Tax due Adv. Tax % of Adv. Default Interest
Deposited Tax
15/06/24 484640x15%=72696 15,000 3.1% 57600 57600x1%x3=1728
15/09/24 484640x45%=218088 45,000 9.3% 173000 173000x1%x3=5190
15/12/24 484640x75%=363480 75,000 - 288400 288400x1%x3=8652
15/03/24 484640x100%=484640 1,00,000 - 384600 384600x1%x1=3846
Interest u/s 234C 19,416
Interest u/s 234B
% of Advance Tax = 100000/484640x100 = 20.63%
As advance tax paid is less than 90% of tax liability therefore Interest u/s 234B shall be
charged
Default Period = 01/04/25 – 10/12/25 = 9 months
Interest u/s 234B = 3,84,600 x 1% x 9 = 34,614
Interest u/s 234A
Default Period = 01/11/25 – 10/12/25 = 2 months
Interest u/s 234A = 3,84,600 x 1% x 2 = 7,692
