Navneet Jain (1 Points)
23 July 2025I am a salary professional / individual.
I am trying to file an online ITR 2 for current AY. I have paid the entire tax (FY 24-25) through my employer.
I am eligible for a refund. But ITR portal is showing interest u/s 234c and my refund is getting adjusted after deducting interest amount.
My question is - when have I already paid full tax before 31-Mar-25 (TDS deducted > Tax Payable) and have a refund, why interest u/s 234c being charged?
SUSHANT BIDAYE
(691 Points)
Replied 23 July 2025
If you have paid entire tax through tds,which is more than your tax liability , 234 c interest should not be applicable.
I am surprised at it
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(195996 Points)
Replied 23 July 2025
Interest under Section 234C is charged at a simple rate of 1% per month or part of a month on the shortfall amount of advance tax for each installment.
For the first three installments (June 15, September 15, December 15): If there's a shortfall, interest is calculated for a period of three months on the unpaid amount.
For the last installment (March 15): If there's a shortfall, interest is calculated for a period of one month on the unpaid amount.
Section 234C: Deals with interest for deferment or short payment of advance tax installments during the financial year.
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