Default in payment of advance tax (Under Section 234B)

section 234 B says 
You need to pay at least 90% of your total assessed tax before 31st March to avoid interest. No interest is applicable if the outstanding tax amount is less than 10% of the total tax liability for the financial year. 
Does  the total "assessed tax" include the educational cess (3%) as well?
In my case, if educational cess is included, then I have to pay the interest for default in payment for advance tax (Under Section 234B). If educational cess is not included in the total assessed tax, then I have paid more than 90% by 31st Mar and hence need not pay this interest under section 234B.

Please clarify.
Thanks in advance
Asked 2 years ago in Income Tax from Chennai, Tamil Nadu
It makes no difference. 

Lets suppose you paid Rs. 90 as Advance Tax. The cess thereon @ 3% works out to Rs. 2.7. The total advance tax paid by you is Rs. 92.7. 

Now the tax is Rs. 100. The cess thereon @ 3% works out to Rs. 3/-. The total tax payable by you is Rs. 103.

Now if you check calculations,Rs. 92.7 is also 90% of Rs. 103/-.

What you are perhaps trying to do is that Rs. 90 includes cess. The assessed tax is Rs103, in which case the advance tax payment will be less than 90% of assessed tax. However, this computation is not correct. You cannot compare oranges with apples.
B Vijaya Kumar
CA, Hyderabad
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yes it includes the education cess as well.
Shyam Sunder Modani
CA, Hyderabad
1408 Answers
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Dear Sir,

The word tax includes basic tax as well as cess.

Thanking You.


CA Rohit R Sharma.
Rohit R Sharma
CA, Mumbai
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The assessed tax includes educational cess, better you pay interest u/s 234B.
Vijay N. Kale
CA, Hyderabad
248 Answers
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