Question

Interest payable u/s 234C is computed at

A Compound interest @ 1% p.m. Correct Answer Incorrect Answer
B Simple interest @1% p.a. Correct Answer Incorrect Answer
C Compound interest @ 1 % p.a. Correct Answer Incorrect Answer
D Simple interest @1% p.m. Correct Answer Incorrect Answer

Solution

Section 234C of the Income Tax Act, 1961 provides for interest payable on delayed payment of advance tax. The interest is computed at a simple interest rate of 1% per month or part of a month on the amount of advance tax that is not paid on or before the due date. Therefore, the interest payable under Section 234C is simple interest at 1% per month.

Practice Next

Relevant for Exams:

×
×