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While checking the acknowledgement of your ITR filed, you might have sometime witnessed interest u/s 234B and 234C. Looking at it you are left confused and find hard to interpret the reason of such levy. We help you grasp all about, why such amount is charged in your income tax return.
234B and 234C are interest sections which relate to payment of advance taxes.
Any taxpayer having total taxes due in a year exceeding Rs.10,000/- is required to pay such amount in installments to the income tax department. Such payment of installments is known as payment of advance tax.
The time limit for payment of advance tax for individual and corporate taxpayers (except those opting for presumptive taxation u/s 44AD) is
| Due Date | Advance Tax payable |
| On or before 15th June | 15% of estimated Advance Tax |
| On or before 15th September | 45% of estimated Advance Tax |
| On or before 15th December | 75% of estimated Advance Tax |
| On or before 15th March | 100% of estimated Advance Tax |
Interest under section 234B and 234C is charged on happening of following events
Any person having total tax payable in a year exceeding Rs. 10,000/- is liable to pay tax in advance. The advance tax shall be paid as per the installments prescribed by the income tax department, which have been quoted above.The payer of advance tax can be anyone like a salaried person, a professional, person carrying his own business, or someone having income from other sources.
Click here to know more about interest under section 234A, 234B or 234C
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