Income Tax Act, 2025
Section 234C: Interest for deferment of advance tax.—1[(1) Where in any financial year,—
234C. Interest for deferment of advance tax.—1[(1) Where in any financial year,—
2[(a) an assessee, other than 3[the assessee referred to in clause (b)], who is liable to pay advance
tax under section 208 has failed to pay such tax or—
(i) 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;
(ii) 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 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) 4[5[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:]
6[Provided that nothing contained in this sub-section shall apply to any shortfall in the payment of the
tax due on the returned income where such shortfall is on account of under-estimate or failure to
estimate—
(a) the amount of capital gains; or
(b) income of the nature referred to in sub-clause (ix) of clause (24) of 7[section 2; or]
8[(c) income under the head “Profits and gains of business or profession” in cases where the
income accrues or arises under the said head for the 9[first time; or]]
10[(d) income of the nature referred to in sub-section (1) of section 115BBDA,]
Where in any financial year,—
2[
an assessee, other than 3[the assessee referred to in clause
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;
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 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;]
4[5[an assessee who declares profits and gains in accordance with the provisions of
sub-section
of section 44AD or sub-section
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:]
6[Provided that nothing contained in this sub-section shall apply to any shortfall in the payment of the
tax due on the returned income where such shortfall is on account of under-estimate or failure to
estimate—
the amount of capital gains; or
income of the nature referred to in sub-clause
of clause
of 7[section 2; or]
8[
income under the head “Profits and gains of business or profession” in cases where the
income accrues or arises under the said head for the 9[first time; or]]
10[
income of the nature referred to in sub-section
of section 115BBDA,]