Impact of Paying Advance Tax After Missing the Deadline
This query is : Resolved
24 March 2025
Dear Expert,
I have a client who has a projected tax liability of ₹4 Lakhs for FY 2024-25 under the new tax regime. Unfortunately, they missed the advance tax payment deadlines, including the final installment due on 15th March 2025. The due date for filing the ITR is 30th November 2025.
My question is: If my client pays the advance tax now, will it help reduce the interest liability when filing the ITR? Specifically, how will it impact the interest calculations under Sections 234B and 234C?
Any insights or advice on this matter would be greatly appreciated. Thank you!
I have a client who has a projected tax liability of ₹4 Lakhs for FY 2024-25 under the new tax regime. Unfortunately, they missed the advance tax payment deadlines, including the final installment due on 15th March 2025. The due date for filing the ITR is 30th November 2025.
My question is: If my client pays the advance tax now, will it help reduce the interest liability when filing the ITR? Specifically, how will it impact the interest calculations under Sections 234B and 234C?
Any insights or advice on this matter would be greatly appreciated. Thank you!
24 March 2025
Interest under Section 234B is charged at 1% per month or part thereof on the outstanding tax amount from April 1, 2025, until the date of payment or filing of ITR, whichever is earlier.
By paying the advance tax now (March, 2025), your client can avoid additional interest under Section 234B for April and subsequent months.
By paying the advance tax now (March, 2025), your client can avoid additional interest under Section 234B for April and subsequent months.
30 September 2025
Good luck....
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