Interest u/s 234C

What is Interest Penalty u/s 234C?

Income Tax Department wants you to pay your Advance Tax in 4 instalments to ease the burden of tax. These instalments must be paid on or before the due date. If you fail to do so, then tax department can impose interest penalty u/s 234C.

Calculation of Penalty under Section 234C:

Example: Mr. Anand had a total tax payable of Rs. 72,000 and he paid Rs. 8,000 before 15th June and Rs. 15000 each in next three quarters. He had some shortfall in every instalment he paid. So by 31st of March he paid total Rs. 53,000. The remaining Rs.19,000 was paid on 10th of July next year while filing tax return. 
Due to shortfall in each instalment, he was also supposed to pay interest under section 234C. The interest in his case is calculated as follows:

He is also liable to pay interest u/s 234B as he failed to pay 90% of Assessed Tax by 15th March. Interest is calculated as follows:

So total interest payable by Mr. Anand u/s. 234 B&C will be Rs. 1,796/- (1036+760)

You can refer to this article. It has elaborately discussed interest under section 234C.

https://www.wittytax.com/interest-under-section-234c/