Interest for deferment in instalments of Advance Tax - Section 234C - Income Tax - Ready Reckoner - Income Tax

Interest for deferment in instalments of Advance Tax - Section 234C (a) Where in any financial year, an assessee, other than who declares profits and gains u/s 44AD(1) or u/s 44ADA (1) , who is liable to pay advance tax under section 208 has failed to pay such tax or has made late payment of advance tax, then asessee shall pay the interest u/s 234C as under:- Circumstances in which interest is payable u/s 234C Rate of interest Period Amount on which interest is to be paid When advance tax paid on or before 15th June is less than 15% of tax due on returned income Simple interest @ 1% p.m. 3 months 15% of tax due on returned income minus advance tax paid upto 15th June [ Read with Note 1 below the table ] When advance tax paid on or before 15th September is less than 45% of tax due on returned income Simple interest @ 1% p.m. 3 months 45% of tax due on returned income minus advance tax paid upto 15th September [ Read with Note 1 below the table ] When advance tax paid on or before 15th December is less than 75% of tax due on returned income Simple interest @ 1% p.m. 3 months 75% of tax due on returned income minus advance tax paid upto 15th December When advance tax paid on or before 15th March is less than 100% of tax due on returned income Simple interest @ 1% p.m. 1 month 100% of tax due on returned income minus advance tax paid upto 15th March Note 1. No Interest leviable in case of First and second Quarter if short payment is upto specified Limit if the advance tax paid by the assessee on the current income, on or before the 15th day of June is not less than 12% or, on or before the 15th day of September is not less than 36% of the tax due on the returned income, then, the assessee shall not be liable to pay any interest on the amount of the shortfall on those dates. [ Section 234C(1)(a) ] (b) An assessee who declares profits and gains u/s 44AD(1) or u/s 44ADA (1) and who is liable to pay advance tax under section 208 has failed to pay such tax or the advance tax paid by the assessee on its current income on or before the 15th day of March is less than the tax due on the returned income, then, the assessee shall be liable to pay interest @1% on the amount of the shortfall from the tax due on the returned income. [ Section 234C(1)(b) ] The section 234C(1) is not apply in the specified cases Any shortfall in the payment of the tax due on the returned income where such shortfall is on account of under-estimate or failure to estimate- ( a ) the amount of capital gains; or ( b ) income of the nature referred u/s 2(24)(ix) or, (c) income under the head Profits and gains of business or profession in cases where the income accrues or arises under the said head for the first time or (d) Dividend Income Upto 31.03.2021 - income of the nature referred to u/s 115BBDA(1) From 01.04.2021 - the amount of dividend income. Meaning of Tax due on Return Income Tax on total income declared in ROI XXXX Less : Any relief of tax allowed under section 89 (XX) Relief of tax u/s 90 / 90A (XX) Relief of tax u/s 91 (XX) AMT credit under section 115JD (XX) TDS/TCS (XX) Tax due on Returned Income XXXX