Interest Calculator (234A, 234B, 234C)

Calculate penalty interest for late filing and non-payment of advance tax.

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Interest Calculation

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Interest Under Section 234

Section 234A - Late Filing

Rate: 1% per month (part month = full month) On: Outstanding tax (Total tax - TDS - Advance Tax) Period: From due date to actual filing date Example: Due date 31-Jul, Filed 15-Oct Months = 3 (Aug, Sep, Oct counted as full) Interest = Outstanding Tax × 1% × 3

Section 234B - Non-payment of Advance Tax

Rate: 1% per month On: Amount by which advance tax falls short of 90% Period: From 1st April to filing date Applicable when: Advance tax paid < 90% of assessed tax Interest = Shortfall × 1% × Months

Section 234C - Deferment of Advance Tax

Rate: 1% per month × 3 months (per installment) On: Shortfall in each installment Due Dates: Cumulative % 15-Jun 15% 15-Sep 45% 15-Dec 75% 15-Mar 100%

FAQs

All three sections charge interest at 1% per month or part of month. It's simple interest, not compounded.

Yes, even 1 day delay in a month counts as a full month for interest calculation.

If tax liability (after TDS) is less than ₹10,000, you're not required to pay advance tax and 234B/234C won't apply.

Yes, you may be liable to pay interest under all three sections simultaneously depending on your tax payment and filing pattern.

⚠️ Disclaimer: For estimation only. Actual interest computed by CPC.