How to use the advance tax interest calculator (step-by-step)

1. Assessed tax (₹) for the FY
   Provide total tax on returned income after TDS/TCS and set-off credits (s.90/90A/91, MAT/AMT).
   If the assessed tax is below ₹10,000, advance-tax provisions don’t apply.
2. Self-assessment payment / filing date (AY)
   Pick the AY date you paid the final self-assessment tax or filed the return. Months for 234B are counted from 1 April of the AY up to this date.
3. Advance-tax paid — cumulative by due dates
   Enter cumulative payments made by each due date:
   15 Jun (≥15%) • 15 Sep (≥45%) • 15 Dec (≥75%) • 15 Mar (100%).
   Values must be cumulative (each ≥ previous).
4. Options (if relevant)
   • Resident senior citizen (60+) without business/professional income → advance tax not applicable → no 234B/234C.
   • Presumptive 44AD/44ADA → single 100% instalment by 15 March for 234C.

Press Calculate to view 234B interest, 234C interest (with period-wise breakdown), and total interest.

When interest applies (what the calculator checks)

• Section 234B — Default in payment
  If advance/self-assessment tax paid by 31 March < 90% of assessed tax (after TDS/TCS & credits), interest is 1% per month from 1 April (AY) until the payment/filing date, on the shortfall (rounded to ₹100).
• Section 234C — Deferment of instalments
  If any due-date target is not met, interest is 1% per month on that instalment shortfall for:
  • 3 months each for 15 Jun, 15 Sep, 15 Dec; and
  • 1 month for 15 Mar.
    Relief: No 234C for certain incomes (capital gains, lotteries, some dividends, first-time business income) if the related tax is paid in the next instalment or by 31 March.
• Exemptions
  Resident senior citizens (60+) without business/professional income are outside advance-tax, hence no 234B/234C. Under 44AD/44ADA, paying 100% by 15 March satisfies 234C.

Key tax terms

• Advance tax (quarterly instalments)
  Tax paid during the year against your expected total tax, using the 15% / 45% / 75% / 100% cumulative schedule above.
• Assessed tax (for interest)
  Tax on returned income minus TDS/TCS and eligible reliefs/credits; this forms the base for 234B/234C checks.
• Rule 119A (calculation rules)
  • Rate: 1% simple interest per month.
  • Time: Any part of a month counts as a full month.
  • Amount: Round to the nearest ₹100—this calculator does it for you.
• Presumptive schemes (44AD/44ADA)
  For eligible small businesses/professionals, 234C requires one instalment—100% by 15 March.

Best-practice tips (to minimise interest)

• Aim ≥90% by 31 March to avoid 234B.
• Plan quarterly using the instalment targets to avoid 234C.
• If you realise late-year income (e.g., capital gains), pay its tax in the next instalment or by 31 March to utilise 234C relief.
• Under presumptive taxation, diarise 15 March as the single critical date.

FAQs — Advance tax, 234B, and 234C (India)

1) What is the ₹10,000 threshold for advance tax?
Advance-tax provisions apply only if assessed tax ≥ ₹10,000 after TDS/TCS & credits.

2) Which due dates and percentages are used?
15 Jun ≥15%, 15 Sep ≥45%, 15 Dec ≥75%, 15 Mar 100% (cumulative).

3) How does this calculator compute 234B?
It checks whether <90% was paid by 31 March. If yes, it applies 1% per month from 1 April (AY) up to your payment/filing date on the rounded shortfall.

4) How does it compute 234C?
For each instalment, it compares the required cumulative amount with cumulative paid by that due date and charges 1% per month for the appropriate months (3/3/3/1).

5) I’m a resident senior citizen with no business income. Do I pay advance tax?
No. Advance-tax provisions don’t apply, so no 234B/234C.

6) Does the old vs new tax regime change 234B/234C rules?
No. Only your tax amount changes; due dates and interest rules remain identical.

7) I’m under 44AD/44ADA. What should I pay?
100% of assessed tax by 15 March to satisfy 234C.

8) Are capital gains always penalised under 234C?
Not if the gain arises later and the related tax is paid in the next instalment or by 31 March—that relief avoids earlier-instalment 234C.

9) What’s the difference between 234A and 234B/234C?
234A is for late filing / late self-assessment tax after the ITR due date; this calculator covers 234B and 234C only.

10) Why does the tool round to ₹100?
Because Rule 119A mandates rounding of the base amount used for interest.

Zero guesswork for 234B/234C—calculate in seconds.

Internal links

• Advance-Tax Planner (India) — forecast 15%/45%/75%/100% targets and top-ups.
• TDS Late-Deposit Interest Calculator — u/s 201(1A).
• HRA Exemption Calculator — s.10(13A) with monthly/yearly mode.
• Income-tax FAQs — Salary & HRA — practical rules and examples.

Disclaimer:
This tool provides illustrative estimates of interest under Sections 234B/234C using Rule 119A (1% p.m., part-month = full month, bases rounded to ₹100) based on the figures you enter. Tax laws and interpretations change; results may differ from the Income-tax Department’s computation. This is not tax advice—please review with your Chartered Accountant before filing.