Clarification on Interest u/s 234c being charged

ITR 1522 views 4 replies

I 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?

Replies (4)

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

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.

I am facing the same issue, even though my employer has remitted the TDS on time and I have paid the advance tax within the due dates for each quarter. In fact, the advance tax paid for income from other sources exceeds the tax liability computed for each respective quarter. When I use the tax calculator (without logging in) on the Income Tax website, it correctly shows that there is no penalty under section 234C. This appears to be a glitch in the portal after logging in, and I have therefore raised a grievance through the portal.

Hi team, is this issue resolved? Facing same concern while filing ITR online


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