IT Interest u/s 234 B & C?

Question

Hi,

Need your help in the following case...

I had two employers in the FY 2007-08. The current employer did not

consider my income from my previous employer while deducting tax. Now

I have two form-16. Each reflects idividual employers payments as

salary. When I clubbed both the income figures I discovered that I

need to pay additional 20000 as income tax. Now as this is July' 08 I

need to pay the additional tax this month.

My questions are ..

> Do I need to pay advance tax interest u/s 234C?

> Do I need to pay interest u/s 234 B for Apr-Jul' 08 period?

Also I earned interest from bank deposits and have not paid advanced

tax for the same. My bank deducted a TDS @10% but I am in the slab of

30%. Do I need to pay interest u/s 234 B & C?

Please help me as I am very confused.

Answer 1

Read Interest Chargeable in Certain cases

http://mytaxes.in/index.php?topic=77.0

Answer 2

This is a very common problem faced by salaries employees these days. in your case you need to club the salary income from both the employers and club the interest on your fixed deposit and savings deposit to find out your total taxable income.

Find out the tax and deduct the amount already deposited by way of tds on salaries and tds on fd's. balance amount is your tax payable and if that amount exceeds Rs. 5000/- than you have to pay the interest on tax u/s 234B & 234C.