Getting 234C interest tax to pay, why?

I sold some debt mutual fund units in April 2020. Got some capital gain from that transaction. I realized I should pay advance tax for that debt fund gain. So I paid advance tax in Jan 2021. Now today while filing return I am seeing some amount to pay under "Interest for deferment of advance tax (section 234C)".

Can someone explain why I am getting interest amount to pay?
 

 

Replies (4)
Quick Summary
This discussion explains why you might be charged interest under Section 234C for late payment of advance tax. The interest applies when advance tax instalments are not paid on time, particularly if the amount paid by June 15th is less than 12% of your total assessed tax. The user learned that capital gains from selling mutual funds also require timely advance tax payments to avoid such interest charges.

You did not pay advance tax payable quarter wise so you have to pay interest on delay under 234C

It is for the delay in deposit of advance tax.

Thank you both for your reply. I will remember from this year to pay advance tax in the same quarter in which I will get capital gain.

Interest under section 234C is imposed when there is a delay in payment of an instalment of advance tax. You pay interest under Section 234C if, Advance Tax is paid on or before 15th June is less than 12% of Assessed Tax

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