Taxpayers can pay the advance tax in 4 installments during the Financial Year. However, if you still default, there are consequences in the form of an interest penalty u/s 234C. This interest u/s 234C is calculated for the delay/non-payment of advance tax during the year


As per the Income Tax Act, the assessee is required to pay advance tax in installments as mentioned in the advance tax due dates table below: 


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So in case of short/no payment of advance tax, interest/penalty will be levied u/s 234C and it is calculated as follows:


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On the tax planner, interest and penalty can be seen on the advance tax screen. The net tax liability as per the income situation, the advance tax credits paid as well as the TDS/TCS deducted are shown in the summary. The advance tax is calculated post that and the outstanding and interest amounts attracted can be seen. 


 


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