Question
Interest under Sections 234A, 234B and 234C — when does each apply?
Answer
Bottom line: All three charge 1% per month, but for different defaults — late filing (234A), short advance tax (234B) and missed advance-tax instalments (234C).
1. Section 234A
Charged when you file the ITR after the due date, on the unpaid tax, until the date of filing.
2. Section 234B
Charged when advance tax paid is less than 90% of the assessed tax, from 1 April of the assessment year until payment.
3. Section 234C
Charged for deferment — when you miss the 15%, 45%, 75% and 100% instalment targets due on 15 June, 15 September, 15 December and 15 March.
Work out the interest with our 234A/234B/234C Interest Calculator.
This answer is general information based on the law as it stood when written and is not professional advice on your specific situation. Verify the current position and consult a qualified professional before acting. See our disclaimer.