Interest under Sec. 234A, 234B, 234C of Income Tax Act :
An Assessee has to pay Taxes in Advance on his/her income during the Financial Year. In case, of default in paying the same will attract the interest liability and calculate the interest under sec. 234A, 234B, and 234C of the Income Tax Act.
You can put the Tax liability & Advance payments to calculate the interest under Sec. 234A, 234B, and 234C of the Income Tax Act in the Free Excel Calculator. To download the same, please click on the below button.
Section 234A: Apply for the delay in furnishing the return on or before the due date.
Interest is payable if the return is filed after the original due date.
Section 234B: For Non-payment/short payment of Advance Tax.
Income Tax is to be assessed on a provisional basis and to be paid in Advance every quarter. When the Tax liability is of Rs. 10,000 or more (This is after TDS/TCS/MAT Credit), at least 90% of the Assessed tax should be paid in Advance. The delay in months is calculated from April of the Assessment Year till the month of payment.
Section 234C: Deferment of Payment of Advance Tax/delay in payment of Tax.
Interest is payable if there is deferment or delay in payment of Advance Tax in the Financial Year.
The below table gives a birds-eye view of payment of Advance Tax to avoid interest under Sec. 234A, 234B, 234C for FY 2021-22 of the Income Tax.
| 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 is payable | -NIL- | 3 months |
| 15th September | 45% of advance tax is payable | -NIL- | 3 months |
| 15th December | 75% of advance tax is payable | -NIL- | 3 months |
| 15th March | 100% of advance tax is payable | 100% of advance tax payable | 1 month |
Click here for the interest calculator FY 2020-21
Will not quarterly variation in capital gains, dividend etc alter the working of advance tax instalment payable and interest if any under section 234 ? how about modifying your excel calculator to incorporate the same as it would be extremely useful?
You can use the Interest Calculator u/s 234A, 234B, and 234C available on the Web Site. It comes along with the calculation of Advance Tax.