Interest under Section 234B & 234C charged despite being a salaried employee - Need clarification

Tax queries 1321 views 2 replies

Deal Box

3 Points Posted on 27 July 2025

Hi fellow members,

I'm facing an issue with my ITR and need some guidance. I'm a salaried employee and filed my ITR-1 on 27th July 2025, but I'm being charged:

Interest u/s 234B: ₹603
Interest u/s 234C: ₹761

My income details:

Total salary: ₹23,93,834 (TDS properly deducted throughout the year)
Other income: ₹67,613
Total income: ₹24,61,447

My confusion: As a salaried person, I understood that TDS from salary covers advance tax requirements. Why am I being charged these interest amounts when I filed my return on time?

Is this because of my other income of ₹67,613? Was I supposed to pay advance tax specifically on this amount during FY 2024-25?

I always thought salaried employees are exempt from advance tax payments as long as sufficient TDS is deducted. Can someone clarify:

Is advance tax required on other income even for salaried individuals?
Could this have been avoided if I had paid advance tax only on the ₹67,613?
Any way to get relief from these charges now?

Would really appreciate expert guidance on this matter.

Thanks in advance!

Replies (2)

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

211693 Points Posted on 27 July 2025

Yes, if the tax liability exceed Rs. 10,000/-
Correct.
No relief, need to pay the differential tax with the interest. But the interest can get reduced if the other income is bifercated in the exact quarters.

Tax Garden

Tax Consultant

516 Points Posted on 29 May 2026

Section 234B and 234C apply whenever advance tax paid, including TDS, falls short of 90% of your total actual tax liability for the year. For salaried employees this typically happens when there is additional income outside salary, such as FD interest, capital gains, or rental income, that your employer TDS did not cover. Check your AIS and Form 26AS for any income entries beyond your salary slip. If the employer deducted TDS correctly on salary but you had other income, you would have needed to pay advance tax on that portion by the quarterly installment dates.

Our [TDS on salary and advance tax guide](https://taxgarden.in/blog/tds-on-salary-section-192-392-employer-guide-india) explains how employer deduction interacts with personal advance tax obligations