Section 234A, 234B, and 234C of the Income-tax Act, 1961 deals with interest payment as below. Interest in all the cases is payable @ 1% per month.
Download the Free Excel calculator of Interest u/s 234A, 234B, and 234C from below link.
Section 234A : For delay in furnishing of the income tax return in the time of before due date.
Interest is payable only if the return is filed after the due date.
Section 234B : For non Payment or short payment of Advance Tax.
Tax is to be paid in Advance every quarter. At least 90% of Assessed tax should be paid in advance if the Tax liability is of Rs. 10,000 or more (This is after TDS/TCS or MAT Credit). The delay in months is calculated from April till the month of payment.
Section 234C : For Deferment of payment of Advance Tax or delay in periodic payment of Tax.
Advance tax payment slabs and interest thereon is payable is as per below table.
| Due date of payment of Advance Tax | In case of all taxpayers other than taxpayer opting for presumptive income u/s 44AD | Taxpayers opting for presumptive income u/s 44AD | Interest payable on shortfall for… |
| 15th June | 15% of advance tax payable | NIL | 3 months |
| 15th September | 45% of advance tax payable | NIL | 3 months |
| 15th December | 75% of advance tax payable | NIL | 3 months |
| 15th March | 100% of advance tax payable | 100% of advance tax payable | 1 month |
For Income Tax Calculator for FY 2018-19 (AY 2019-20) click here to download in Excel for free.
