regarding section 234c.

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This discussion clarifies the applicability of Section 234C interest on advance tax. Even if the full tax is paid by the March deadline, interest may still be due for underpayments in earlier quarters (Q1, Q2, Q3). This applies even if the tax relates to capital gains, with interest calculated based on the quarterly breakdown of those gains.

Suresh S. Tejwani

Suresh S. Tejwani (Querist)

08 March 2025 A taxpayer has paid 100% of his assessed tax as advance tax on 15th march. But he has not paid any advance tax in QTR-1, QTR-2 & QTR-3.
Is he liable to pay interest u/s 234C for QTR-1, QTR-2 & QTR-3 in this case scenario?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

08 March 2025 Yes, the taxpayer is liable to pay interest under Section 234C of the Income Tax Act for the shortfall in the earlier quarters.

Suresh S. Tejwani

Suresh S. Tejwani (Querist)

08 March 2025 If 100% tax is on capital gain, then also interest is payable for all the 3 QTRs?
is interest chargeable under section 234b is also applicable for such income of Capital Gain?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

08 March 2025 1. Interest is charged based on the capital gains' quarterly break up.
2. Yes, unless senior citizen...

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

04 October 2025 Good luck...

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