INTEREST 234B

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This discussion clarifies how to calculate interest under Section 234B for the Financial Year 2024-25. It addresses queries regarding the 'Date of Determination of Income' and the exact period for interest calculation. The advice provided explains that interest is charged at 1% per month or part thereof, starting from April 1st of the assessment year, and any portion of a month counts as a full month for calculation purposes.

Sankar Chakraborty

Sankar Chakraborty (Querist)
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22 July 2025 HOW TO CALCULATE INTEREST U/S 234B FOR FY 2024-25
I HAVE A QUERY ON THE FOLLOWING
Date of Determination of Income U/s 143(1)---HERE WHAT DATE SHOULD WE ENTER ?
INTEREST CALCULATION FROM 01.04.2025 TO ? WHAT DATE ?
PLEASE REPLY

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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22 July 2025 Interest is charged at 1% per month or part of a month. This means even if you delay payment by a few days into a new month, you'll be charged for the entire month.

Period of Default:
Interest starts from April 1st of the assessment year.
Suppose you paid the balance on July 25th.
The months of default are April, May, June, and July (even though it's only part of July, it counts as a full month). So, 4 months.

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Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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25 September 2025 Good luck...

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