Can I avoid 234B by paying before filing?

No. 234B is charged on the shortfall in advance tax during the year. Paying at the time of filing stops further interest but does not remove what has accrued.

Why does a single day cost a whole month?

All three sections count part months as complete months. There is no proration, which is why the due date matters more than the amount of delay.

Taxincome taxIndia only

Interest u/s 234A 234B 234C Calculator

Interest under sections 234A, 234B and 234C. All three run at one percent a month on part months, so filing one day into a month costs a full month of interest under each applicable section.

Also called: 234a 234b 234c interest, late filing interest calculator.

Total interest

₹8,800

₹8,800 in interest: ₹3,600 under 234A for filing late, ₹3,600 under 234B for the shortfall in advance tax and ₹1,600 under 234C for deferring instalments. Assessed tax is ₹1,60,000. Advance tax fell below ninety percent of assessed tax, so 234B applies.

234A, late filing

₹3,600

234B, shortfall

₹3,600

234C, deferment

₹1,600

Assessed tax

₹1,60,000

Total payable including interest

₹2,58,800

On the liability threshold

Advance tax fell below ninety percent of assessed tax, so 234B applies.

How this is calculated

Computed from the published rates for the tax year you selected, which is not necessarily the current year. A calculation, not tax advice, and it does not know anything about your circumstances beyond the figures entered.

Method and background

This is what the calculation gives for the numbers you entered. It is an estimate, not advice, and it knows nothing about your situation beyond those numbers. Rules for India change on a published schedule; the effective date is shown on every rule-based tool.

How this is calculated

Section 234A charges interest for filing after the due date, 234B for paying less than ninety percent of assessed tax as advance tax, and 234C for missing individual advance tax instalments. All three run at one percent a month and count part months as whole, which is why filing on the first of a month rather than the last of the previous one costs a full extra month. The 234B liability arises only if advance tax and TDS together fall below ninety percent of the assessed tax.

all three sections run at one percent a month, on a part-month basis

m: Months

Worked examples

Each of these is asserted on every build. If a change to the engine ever moved one of these answers, the build would fail before the page could print it.

a late return with a shortfall

Total tax payable: ₹2,50,000
TDS and TCS already credited: ₹90,000
Advance tax paid: ₹40,000
Months the return is late: 3
Advance tax position: Missed some instalments

Total interest₹8,800

1,20,000 shortfall at 1% for 3 months

Open this example

meeting the ninety percent threshold removes 234B

Total tax payable: ₹2,50,000
TDS and TCS already credited: ₹90,000
Advance tax paid: ₹1,50,000
Months the return is late: 0
Advance tax position: Paid all instalments on time

Total interest₹0

boundary: the statutory threshold

Open this example

Method and limits

What it assumes

A simplified instalment pattern for 234C, which in the Act depends on the specific quarters missed.

What it deliberately does not model

The exact 234C computation depends on which instalments were short and by how much.
Different rules apply to those under presumptive taxation.
This is an estimate, not a substitute for the computation in your return.

Formula version 1.0.0 · definition 1.0.0 · India · Report a problem with this calculator

Frequently asked questions

Can I avoid 234B by paying before filing?: No. 234B is charged on the shortfall in advance tax during the year. Paying at the time of filing stops further interest but does not remove what has accrued.
Why does a single day cost a whole month?: All three sections count part months as complete months. There is no proration, which is why the due date matters more than the amount of delay.