Interest when advance tax paid is below 90% of the tax, now section 424 of the 2025 Act
Estimates only, not financial advice. What you type stays on your device. Checked against sources on 30 Oct 2026.Interest under section 234B, now section 424 of the Income-tax Act, 2025, runs when the advance tax paid by 31 March is less than 90% of the tax for the year. It is 1% of the unpaid tax for every month or part of a month from 1 April until the day you pay it. On ₹20,000 unpaid and settled on 20 August, that is five months and ₹1,000. Enter your figures to see your own.
₹2,150
Balance left to pay: ₹20,000.Income-tax Act, 2025 and Income-tax Rules, 2026, checked 30 Sep 2026. An estimate, not tax advice; the late filing fee is not included.
FY 2026-27 · Rates and rules read from the sources listed on this page (the earliest on 30 Oct 2026); they may have changed since.
The page opens on the 234B working tab, which tests advance tax paid against 90% of the tax.
Enter the Tax for the year, after TDS and TCS, and the amounts you paid in each window.
Set Balance paid on to the date you paid the rest of the tax after 31 March 2027.
Read the 234B working: the unpaid amount, the months counted from 1 April and the 1% a month interest.
Enter the tax you expect to owe for FY 2026-27 after TDS and TCS, and what you have paid so far. The calculator shows how much was due by each date, where you fell short, and the interest the Income-tax Act, 2025 charges for it. It runs in your browser, is free, and nothing you type is sent anywhere.
Section 408 sets four dates: 15% of the year's tax by 15 June 2026, 45% by 15 September, 75% by 15 December and the whole amount by 15 March 2027. Each figure is a running total, so the September instalment on ₹1,00,000 of tax is ₹30,000. People using the presumptive schemes (formerly 44AD and 44ADA, now section 58) pay everything by 15 March. A resident aged 60 or more with no business income pays no advance tax at all.
The rest of the article, and all 6 questions about Advance Tax Calculator, are on the Advance Tax Calculator page.
Anyone whose tax for the year, after TDS and TCS, is ₹10,000 or more, under section 404 of the Income-tax Act, 2025. A resident aged 60 or more with no business or professional income is exempt under section 403(3). Salaried people usually owe none, because the employer deducts tax each month, unless they have large interest, rent or capital gains.
Take the amount due by the date, subtract what was paid by then, round down to a multiple of ₹100, and charge 3% for June, September and December or 1% for March. Under the Income-tax Act, 2025 this is section 425. With ₹10,000 paid against ₹15,000 due in June, the interest is 3% of ₹5,000, which is ₹150.
Interest under section 424, formerly 234B, applies when advance tax paid by 31 March is less than 90% of the tax for the year. It is 1% of the unpaid tax for each month or part of a month from 1 April until the balance is paid. Paying 90% or more by 31 March avoids it entirely.
No. The fee for filing after the due date is a separate charge under the Act and is not part of the interest shown here. Section 423 interest, formerly 234A, only runs on tax still unpaid, so paying the balance before the due date avoids it even if the return itself is filed late.
Rates and rules change; check the source before you rely on a figure.
Still stuck? Ask about Advance Tax Calculator and anybody who knows can answer. No account needed.
Same job, other tools: Marginal Relief Calculator – How marginal relief cuts the tax on income just above ₹12 lakh in the new regime · New Tax Regime Calculator – Tax under the default regime, including the rebate and marginal relief · TDS on FD for Senior Citizens – Whether a bank deducts TDS on a senior citizen’s FD interest under the ₹1 lakh limit · Tax Invoice Format (India) – Every particular Rule 46 names, with the ones missing from your invoice listed by clause · Capital Gains on Property – Both routes on a flat or land: 12.5% plain, or 20% after indexation, whichever costs less.
On the related tools: GST Inclusive Calculator – Split a price that already includes GST into value and tax.
More for India: all 48 India calculators.