Quick Summary
The Finance Ministry has issued a corrigendum to the Income-tax (No. 2) Bill, 2025, bringing clarity to the provisions for charging interest on shortfalls in advance tax payments. The update, issued on August 11, 2025, aligns Clause 425 of the Bill with the existing rules under the Income-tax Act, 1
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FAQ :
The Finance Ministry has issued a corrigendum to the Income-tax (No. 2) Bill, 2025, clarifying the interest charged on shortfalls in advance tax payments.
Interest is calculated at 1% per month for three months on any shortfall amount, even if the payment is delayed by just one day.
Yes, if a taxpayer misses a quarterly advance tax deadline, even by a single day, interest will be charged for a minimum of three months on the shortfall.
The corrigendum aims to remove ambiguity in the Bill and align the provisions with the existing rules under the Income-tax Act, 1961.
Individuals, companies, and entities with an annual tax liability of Rs 10,000 or more must pay advance tax in four instalments, unless they are senior citizens without business income.
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