I missed paying instalment of Advance Tax on Sept 15 but paid the same on Oct 10. What will be my interest liability for the Quarter Oct-Dec? Will the deferment period be taken as 3 months or 1 month?
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Deferment period for Advance Tax under Section 234C
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For advance tax missed on 15 September, interest under Section 234C is always charged for 3 months, even if paid in October. The law does not consider actual delay days for 234C — it follows fixed instalment periods only.
I reproduce excerpt from a document found in Cleartax on the subject.
"Interest Imposed by the IT Department - Section 234C
By CA Mohammed S Chokhawala
Updated on: Dec 12th, 2025
Section 234C of the Income Tax Act deals with interest on delayed payment of advance tax installments. Interest at 1% for every month or part of the month is levied for delay in payment of advance tax installments."
From the above, does it not mean that the delay is considered on a monthly basis?
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