Impact of Paying Advance Tax After Missing the Deadline

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If you've missed the advance tax payment deadlines, paying the outstanding amount now can help reduce your interest liability. Specifically, paying before the Income Tax Return (ITR) filing deadline will mitigate interest charges under Section 234B, which is calculated at 1% per month on the unpaid tax. While this payment won't entirely eliminate interest, it will prevent further accumulation from April 1st onwards.

Deepak Londhe

Deepak Londhe (Querist)

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!

Dhirajlal Rambhia

Dhirajlal Rambhia

(Expert)

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.

Dhirajlal Rambhia

Dhirajlal Rambhia

(Expert)

30 September 2025 Good luck....

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