For 234c how is short fall calculated? I am salaried employee, TDS is deducted by company. I did a fixed deposit of X lakhs on Jan 2017 and interest is deducted at 10% in form 26 AS by bank. When i now add that bank interest to gross income it says penalty under 234c. Since the FD itself is done in Jan 2017 there is no concept of paying advance tax in 15th sep 2016, 15th dec 2016. Hence will there be penalty? Since anyway 10% is deducted by default do i need to calculate the remaining as 20% if falling in 30% for shortfall? So how is short fall calculated, if you take the tax pending and charge it at 1% each month then it doesnt reflect the fact that FD itself was done in Jan 2017 hence how can advance tax be paid for something that didnt exist in 2016.
Let me simplify the question.
As salaried employee with TDS cut by company i have no tax pending to pay by end of march 31. But i did a Fixed deposit of X lakhs in Jan 2017. The interest received on this when added to income shows penalty under 234c. 234c is for advance tax to be paid in 15 June,15th September,15th December,15th March. Since I did not have that FD at all in June, Sep,Dec 2016 how can i pay advance tax? It is not a matter of estimating/guessing.
Also i did pay advance tax of the full amount on 3-Mar-2017 for the interest received for the fixed deposit bring my tax liability to 0 Rs. The penalty is being put for Jun,Sep,Dec only. March penalty is 0 Rs because i paid advance tax. Again i repeat the FD existed only after Jan 2017 so its impossible for me to guess/anticipate/forsee the taxable amount in Jun, Sep, Dec 2016 period.
The fixed deposit itself started on Jan 2017 so there is no concept of paying advance tax on something that didnt exist at all in 2016. 234c penalty should be 0 Rs in my case. Please advice.
My question si If i have EPF where there is a fixed 12% deduction from salary are there .If i want to contribute more we need to open vpf account? should i go for vpf if i have the epf account? and can i remain both epf and vpf account? or there should be only one account either epf or vpf? kindly guide me in that