Clarification - Interest U/s. 234B & 234C

[Ashutosh Chhawchharia]

Whether Interest U/s. 234B & 234C of the Income Tax Act, 1961 is leviable where the copany has a Book Profit and Net Tax Payable if as per Section 115JB (MAT Tax) of theIncome Tax Act, 1961.

[Guest]

Oh, yes, amount calculated under 115JB (MAT) minimum alternate tax on the basis of book profit is nothing but a tax which takes place when the regular tax is lower that mat. Interest u/s 234B and 234C are squarely applicable.

[Surender Gupta]

Yes, you need to pay interest under 234B and 234C on MAT also.

[Harish Chander Bhatia]

This is a much debatable issue. Case of Kwality Biscuit is to be referred

AI Summary

Interest under sections 234B and 234C applies to MAT under section 115JB, though the point remains debated. Interest under section 234B and section 234C is chargeable where tax liability is determined under section 115JB (MAT); the MAT-computed tax operates as the tax for the year and may attract interest for advance tax default and instalment deferment, although the position is debated in practice and authority.