New Enroll in RBI Grade B New Batch - Starts on May 21

    Question

    An assessee liable to pay advance tax is not liable to

    pay interest u/s 234B if the advance tax paid by him is not less than
    A 90% of advance tax payable by him Correct Answer Incorrect Answer
    B 80% of advance tax payable by him Correct Answer Incorrect Answer
    C 100% of advance tax payable by him Correct Answer Incorrect Answer
    D 70% of advance tax payable by him Correct Answer Incorrect Answer

    Solution

    An assessee liable to pay advance tax is not liable to pay interest under section 234B of the Income Tax Act if the advance tax paid by them is not less than 90% of the advance tax payable by them. Advance tax is a system where taxpayers are required to estimate their income for the financial year and pay taxes on a quarterly basis rather than waiting until the end of the year. Section 234B of the Income Tax Act deals with the interest charged on the shortfall of advance tax payments. If an assessee fails to pay advance tax or pays an amount less than the prescribed percentage, which is generally 90% of the advance tax liability, they may be liable to pay interest under section 234B. However, if the assessee has paid at least 90% of the advance tax payable, they will not be charged interest under this section.

    Practice Next