Chartered Accountant · ICAI M.No. 153926 · FRN 136869W
Section 234B — annual shortfall
234B applies if, by 31 March, you have paid less than 90% of your assessed tax through advance tax and TDS. It charges 1% per month on the shortfall from 1 April of the assessment year until you pay the balance (usually at filing). It is about the total falling short.
Section 234C — instalment defaults
234C is about timing: it charges 1% per month when you miss or underpay a specific advance-tax instalment (15 June, 15 September, 15 December, 15 March). Even if you pay the full tax by March, paying late in the year still triggers 234C on the earlier quarters. Capital gains arising late in the year get some relief — confirm.
A worked example
Example: your tax (after TDS) is ₹2 lakh, but you pay nothing until filing in July. 234C applies because you missed every instalment, and 234B applies because you paid under 90% by 31 March — together adding several months of 1% interest. Paying advance tax on the due dates avoids both. Our team can compute and minimise it.