INTEREST U/S 234C

[NABIN AGARWAL]

A Company earned Capital Gain income in March'15 by selling an Immovable Property but need to pay tax U/s 115JB as because normal tax is lower than MAT tax. Can it be allowed to pay Interest U/s 234C for last quarter only as Income is solely from Capital Gain occured in March'15. though he is laible to pay tax U/s 115JB ??? Please reply with Case Law and Section in support of your answer.

AI Summary

Company Must Pay Interest Under Section 234C for Entire Year, Not Just Last Quarter, Due to Capital Gains A company incurred a capital gain in March 2015 from selling an immovable property and is required to pay tax under Section 115JB since the normal tax is lower than the Minimum Alternate Tax (MAT). The query seeks clarification on whether interest under Section 234C can be paid only for the last quarter, given that the income arose solely from the capital gain in March. The response explains that advance tax payments are based on the estimated tax liability for the entire year, and by March, the capital gain tax should have been known, so the suggested computation of interest is not permissible under the law.