Understanding Tax Interests & Late Filing Penalties

Understanding Tax Interests & Late Filing Penalties

If you missed paying your quarterly advance tax on time or filed your Income Tax Return (ITR) after the due date, the Income Tax Department may charge you interest and penalties under various sections.

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Steps to View Interest & Penalty

  1. Go to Tax Computation > Interest & Penalty
  2. You’ll find a breakdown of the different types of interest and penalties charged:

1. Interest for Deferment of Advance Tax (Section 234C)

  • Charged when advance tax is paid late or in insufficient instalments.
  • Interest is calculated at 1% per month on the shortfall amount.
  • A table shows your due vs paid tax for each quarter and the applicable interest.

2. Interest for Default in Payment of Advance Tax (Section 234B)

  • Charged when 90% of total tax liability is not paid as advance tax before year-end.
  • Interest is 1% per month on the unpaid amount from 1st April till the payment date.
  • The summary shows tax dues, payments made, balance, and interest charged.

3. Interest for Late Filing of ITR (Section 234A)

  • Applies when ITR is filed after the due date and there’s outstanding tax liability.
  • Interest is 1% per month on the unpaid tax until filing.
  • The table highlights tax due, delay duration, and interest levied.

4. Late Filing Fees (Section 234F)

  • A flat penalty for filing your ITR after the due date.
    • ₹1,000 if total income is below ₹5,00,000
    • ₹5,000 if total income is above ₹5,00,000
Mobile

Steps to View Interest & Penalty

  1. Go to Tax Computation > Interest & Penalty
  2. You’ll find a breakdown of the different types of interest and penalties charged:

1. Interest for Deferment of Advance Tax (Section 234C)

  • Charged when advance tax is paid late or in insufficient instalments.
  • Interest is calculated at 1% per month on the shortfall amount.
  • A table shows your due vs paid tax for each quarter and the applicable interest.

2. Interest for Default in Payment of Advance Tax (Section 234B)

  • Charged when 90% of total tax liability is not paid as advance tax before year-end.
  • Interest is 1% per month on the unpaid amount from 1st April till the payment date.
  • The summary shows tax dues, payments made, balance, and interest charged.

3. Interest for Late Filing of ITR (Section 234A)

  • Applies when ITR is filed after the due date and there’s outstanding tax liability.
  • Interest is 1% per month on the unpaid tax until filing.
  • The table highlights tax due, delay duration, and interest levied.

4. Late Filing Fees (Section 234F)

  • A flat penalty for filing your ITR after the due date.
    • ₹1,000 if total income is below ₹5,00,000
    • ₹5,000 if total income is above ₹5,00,000

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