Interest on Income Tax

[Pradeep Kaushik]

Dear All,

 

I have Deducted the TDS on Salary of My staff. Now there is some Bank Interets  have Added. Because of that the tax liability has been increesed.

My Query is this, Do i have to add Interest u/sec 234b,234c on the balance Tax:

In Below sheet there is two examples:

 

S. NO.	EMPLOYEE NAME	SALARY INCOME AS PER FORM 16	BANK INTEREST	TOTAL INCOME	INCOME TAX    PAYABLE	TDS BY COMPANY/BANK	BALANCE TAX TO BE DEPOSITED
1	CHO	2,507,293.00	42,552.00	2,549,845.00	628,254.00	613,791.00	14,463.00
2	KYU	1,935,786.00	6,464.00	1,942,250.00	447,715.00	445,719.00	1,996.00

Please clarify, with reference of Rule or Section, in which case i have to add Interest on tax payment.

I have received some suggestion, that if last due tax is not more than 10,000/-, there is no Interest liability.

 

Pradeep Kaushik

 

AI Summary

Clarification: No Interest Under Sections 234B/234C for TDS Deductors; Only Section 201 Applies for Short TDS Deduction. An individual inquired about whether interest under sections 234B and 234C needs to be added to the balance tax due to increased tax liability from bank interest. Two examples were provided showing tax calculations for employees. A response clarified that as a person responsible for deducting TDS, there is no liability to pay interest under sections 234B or 234C. The only liability pertains to short deduction of TDS under section 201 of the Act. Additionally, it was suggested that if the remaining tax due is not more than 10,000, there is no interest liability.