Interest Calculation under section 234A, 234B and 234C

Don’t miss the due date for filing your returns. The deadline is 31st July for unaudited accounts and 30th September for accounts audited by a Chartered Accountant.

Under section 234A, late filing of your return attracts a simple interest of 1% per month on the tax payable.
Interest under section 234B is applicable when you are liable to pay advance taxes, but fail to do so or

You pay advance tax, but the amount paid is less than 90% of the total tax payable by you. Here too, interest is payable at 1% per month on the balance tax payable from April 1st of the assessment year until the date you pay the balance tax.
Advance tax must be paid in 3 installments. 30% of the tax must be paid on or before 15th September. The next 30% must be paid on or before 15th December and the final 40% must be paid on or before 15th March.

Interest is payable under section 234 C if you have not paid any advance tax or have underpaid any of the installments.
The same 1% interest rate will be applied depending on which installment has been not been paid or underpaid.