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Sections 208, 211 & 234A/B/CDirect Tax SuiteFinance Act 2025 Aligned

Advance Tax & Section 234B/234C Penal Interest Engine

Determine mandatory quarterly advance tax schedules (15%, 45%, 75%, 100%) and compute accurate 1% monthly penal interest under Sections 234A, 234B, and 234C for installment shortfalls or delay in return filing.

Governing Law: Sections 211, 234A, 234B, 234C of the Income-tax Act, 2025
Act No. 30 of 2025 Provisions
Quick Profiles & Benchmark Presets
1. Estimated Tax Liability & Tax Credits (2026-27)Net: ₹3,00,000
2. Installments Paid (Section 211 Schedule)Enter actual amount deposited in each quarter
Q1: On or before June 15
15% Target (₹45,000) • Safe Harbor 12%
234C: ₹450Shortfall: ₹15,000
Q2: On or before Sept 15
45% Cum Target (₹1,35,000) • Safe Harbor 36%
✓ No 234C InterestShortfall: ₹0
Q3: On or before Dec 15
75% Cum Target (₹2,25,000)
234C: ₹750Shortfall: ₹25,000
Q4: On or before March 15
100% Cum Target (₹3,00,000)
✓ No 234C InterestShortfall: ₹0
3. Penal Interest Parameters (Sec 234B & 234A)
4 mo

1% per month on shortfall if advance tax paid is < 90% of assessed tax.

1% per month for return filed after statutory deadline (31st July / 31st Oct).

Statutory PositionAct 2025 Engine

Advance Tax Summary

Gross Estimated Tax₹4,50,000
Less: TDS / TCS Credit- ₹1,50,000
Net Advance Tax Assessed₹3,00,000
Total Advance Tax Paid₹3,00,000
Remaining Tax (Pre-Interest)₹0
Statutory Interest Breakdown₹1,200
Section 234C (Installment Deferment):₹1,200
Section 234B (Default / Shortfall < 90%):₹0
Total Outstanding Payable
Tax + Sections 234A/B/C Interest
₹1,200
Statutory Installment Safe Harbors

Under Section 234C, no penal interest is levied on Q1 if at least 12% of net tax was paid by June 15, and on Q2 if at least 36% was paid by September 15.

Statutory Notes & Section 234 Penal Interest Provisions (Act 2025)

Section 234C: Deferment Interest

Levied at 1% simple interest per month for 3 months for shortfalls in Q1, Q2, and Q3, and for 1 month in Q4 against statutory installment benchmarks.

Section 234B: Default in Payment

Triggered if aggregate advance tax paid on or before 31st March is less than 90% of assessed tax. Interest is charged at 1% per month from April 1st.

Section 234A: Late Return Filing

Charged at 1% per month on the net outstanding self-assessment tax payable from the statutory due date (31st July / 31st Oct) until actual return verification.