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Interest on tax payment

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Sheetal Virulkar

8 Points Posted on 16 September 2021

Hello,

As per my friend, his total tax liability for AY 2021-22 is 1.7Lakhs, out of which 97k has already been paid till apr'21 by his employer. Now for remaining tax liability of 73k, I would like to understand if he would have to pay interest while filing an ITR? If yes, how much?

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Quick Summary

This discussion clarifies potential interest charges on tax payments for AY 2021-22. If your total tax liability exceeds the amount paid by your employer, you might incur interest under Sections 234B and 234C of the Income-tax Act. This interest is typically calculated at 1% per month or part of a month on the outstanding tax amount.