Section 234B Interest Calculator
Interest under Sections 234B and 234C
If your tax after TDS exceeds ₹10,000, you must pay advance tax during the year. Miss it and you pay 1% per month simple interest under 234B (for paying too little overall) and 234C (for missing instalments). The calculator above computes 234B; 234C is explained below.
Advance-tax instalments
| Due date | Cumulative payable |
|---|---|
| 15 June | 15% |
| 15 September | 45% |
| 15 December | 75% |
| 15 March | 100% |
Section 234B
Applies if you paid less than 90% of assessed tax as advance tax. Interest is 1% per month on the shortfall from 1 April of the assessment year until payment.
Section 234C
For deferment of instalments — 1% per month for 3 months on each shortfall of the first three instalments, and 1 month on the last. It needs instalment-wise figures, so use it alongside your quarterly payment record.
A worked example (234B)
Assessed tax ₹1,00,000; advance paid ₹60,000 (60%, below 90%); balance paid 4 months after April: interest = 40,000 × 1% × 4 = ₹1,600.
Frequently asked questions
What is the difference between 234B and 234C?
234B is for paying under 90% of advance tax for the year; 234C is for missing the quarterly instalments.
What is the rate?
1% per month simple interest in both cases, on the shortfall.
When does 234B start?
From 1 April of the assessment year until the tax is paid.
Who pays advance tax?
Anyone whose tax after TDS exceeds ₹10,000 in a year.
Can I avoid 234C on capital gains?
Yes, unforeseeable capital gains or lottery income are spared if paid in the remaining instalments.
Source: Income-Tax Act, Sections 234B and 234C. Verify with the Income-Tax Department before filing. ComplyKraft is independent; this is not professional advice.