Section 234C interest relaxed on dividend income, Capital Gain

• February 4, 2021
• CA Chandan Agarwal's Office

Union Budget 2021 proposed to relax Section 234C interest on Dividend income along with capital gains if shortfall in the advance tax payments and tax due has been paid in the subsequent advance tax instalments.

Advance tax instalment for dividend income, Capital Gain etc.

Section 234C of the Act provides for payment of interest by an assessee who does not pay or fails to pay on time the advance tax instalments as per section 208 of the Act. The assessee is liable to pay a simple interest at the rate of 1% per month for a period of three months on the amount of shortfall calculated with respect to the due dates for advance tax instalments.

Read more on: https://taxguru.in/income-tax/section-234c-interest-relaxed-dividend-income-capital-gain.html