The taxpayer is required to pay Advance tax in the current Financial year if his Advance tax liability is Rs. 10,000/- or more. Income-tax department has provided quarterly due dates for payment of advance tax in case of individual taxpayers.
Interest under section 234B is payable for non/short payment of advance tax.
Click here to know about the due dates for payment installments of Advance tax (F.Y. 2021-22).
Interest u/s 234B is payable as follows:
|
Rate of Interest |
Period of Interest |
Amount on which Interest is calculated |
|
Simple interest @1% per month or art of the month |
from 1st April of Assessment year till actual date of payment |
Total tax payable less Advance tax paid |
Other key points for Interest U/s. 234B:-
- This interest is not applicable if 90% or more of Advance tax payable has been paid.
- Simple Interest of 1% per month or part of a month of the Advance tax short paid.
- This interest is compulsory. Hence it cannot be reduced or waived by any Income-tax authority.
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