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Interest u/s 234 Calculator



This calculator calculates interest payable under Sections 234A, 234B and 234C of Income Tax Act for default in payment of Income Tax / Advance Tax and / or filing of Tax Return by specified due dates.
Income u/s 234 Calculator for Non-Corporate Tax payers
Details of Tax paid and Income Tax return
1. Total Tax Liability for the Assessment Year
2. TDS deducted / TCS collected and utilized for the year
3. Advance Tax paid upto 15th June
4. Advance Tax paid during 16th June to 15th Sep. of Financial Year
5. Advance Tax paid during 16th Sep. to 15th Dec. of Financial Year
6. Advance Tax paid during 16th Dec. to 15th Mar. of Financial Year
7. Advance Tax paid during 16th Mar. to 31st Mar. of Financial Year
8. Amount of shortfall in tax payment upto 31st Mar. of Financial Year
9. Income Tax Shortfall (shown at 9 above) paid on or before
10. Income Tax Return filed
Calculation of Interest Payable u/s 234 A
No. of months for which interest is payable on shortfall @ 1% per month
Interest Payable under Section 234 A
Calculation of Interest Payable u/s 234 B
No. of months for which interest is payable on shortfall @ 1% per month
Interest Payable under Section 234 B
Calculation of Interest Payable u/s 234 C
Advance Tax Payable upto 15th June 2018 (15% of Total Tax Liability)
Shortfall in Advance Tax payment
Interest Payable u/s 234 C on shortfall in tax payment upto 15th June of the Financial Year
(No interest payable if tax paid is 12% or more of Total Tax Liability)
Advance Tax Payable upto 15th Sep. (45% of Total Tax Liability)
Shortfall in Advance Tax payment
Interest Payable u/s 234 C on shortfall in tax payment upto 15th Sept. of the Financial Year
(No interest payable if tax paid is 36% or more of Total Tax Liability)
Advance Tax Payable upto 15th Dec. 2016 (75% of Total Tax Liability)
Shortfall in Advance Tax payment
Interest Payable u/s 234 C on shortfall in tax payment upto 15th Dec. of the Financial Year
Advance Tax Payable upto 15th Mar. 2018 (100% of Total Tax Liability)
Shortfall in Advance Tax payment
Interest Payable u/s 234 C on shortfall in tax payment upto 15th Mar. of the Financial Year
Total Interest payable u/s 234 C
Total Interest payable u/s 234 A, 234 B and 234 C
Important : This calculator is an easy online tool for quick basic calculation and cannot give correct calculation in all circumstances. The exact calculation may be made after taking into account all applicable provisions of Income Tax Act / Rules.

Section 234 A : Interest payable for default in furnishing the return of income

Where the return of income for any assessment year is furnished after the due date or is not furnished, the assessee shall be liable to pay simple interest at the rate of one per cent for every month or part of a month for the period commencing on the date immediately following the due date upto the date of furnishing the return (in cases where return is furnished after the due date) or upto the end of the Assessment Year (in cases where no return is furnished) on the amount of shortfall in total income tax payable by the assessee.

In simple words, interest @ 1% per month is payable on the amount of income tax paid after the due date for filing of the return.

Section 234 B : Interest payable for default in payment of advance tax

An assessee who is liable to pay advance tax has failed to pay such tax or where the advance tax paid by such assessee is less than ninety per cent of the assessed tax, the assessee shall be liable to pay simple interest at the rate of one per cent for every month or part of a month for period from the date on which the payment of advance tax became due on the amount of shortfall in the amount of advance tax paid.

In simple words, interest @ 1% per month is payable on the amount of income tax paid after the end of the financial year.

Section 234 C : Interest payable for deferment of advance tax

An assessee, (other than an assessee who declares profits and gains in accordance with the provisions of sub-section (1) of section 44AD or sub-section (1) of section 44ADA, as the case may be) who is liable to pay advance tax under section 208 has failed to pay such tax or

  1. the advance tax paid by such assessee on its current income on or before the 15th day of June is less than fifteen per cent of the tax due on the returned income or the amount of such advance tax paid on or before the 15th day of September is less than forty-five per cent of the tax due on the returned income or the amount of such advance tax paid on or before the 15th day of December is less than seventy-five per cent of the tax due on the returned income, then, the assessee shall be liable to pay simple interest at the rate of one per cent per month for a period of three months on the amount of the shortfall from fifteen per cent or forty-five per cent or seventy-five per cent, as the case may be, of the tax due on the returned income;
  2. the advance tax paid by the assessee on the current income on or before the 15th day of March is less than the tax due on the returned income, then, the assessee shall be liable to pay simple interest at the rate of one per cent on the amount of the shortfall from the tax due on the returned income.

Provided that (a) if the advance tax paid by the assessee on the current income, on or before the 15th day of June or the 15th day of September, is not less than twelve per cent or, as the case may be, thirty-six per cent of the tax due on the returned income, then, the assessee shall not be liable to pay any interest on the amount of the shortfall on those dates.

(b) an assessee who declares profits and gains in accordance with the provisions of sub-section (1) of section 44AD or sub-section (1) of section 44ADA, as the case may be, who is liable to pay advance tax under section 208 has failed to pay such tax or the advance tax paid by the assessee on its current income on or before the 15th day of March is less than the tax due on the returned income, then, the assessee shall be liable to pay simple interest at the rate of one per cent on the amount of the shortfall from the tax due on the returned income.

Please note that in case of salaried employees, the advance tax liability is to be computed on the income other than salary income. TDS deducted by the employer is not to be adjusted against this liability.

For more details, please refer to Section 234A, 234 B and 234C of Income Tax Act, 1961.

Updated : Sept 24, 2020
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