📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!

    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
    More Accounts Questions

    Relevant for Exams:

    ask-question