Interest for paying an advance tax instalment short, now section 425 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 234C, now section 425 of the Income-tax Act, 2025, is 3% of the shortfall at 15 June, 15 September and 15 December, and 1% at 15 March. Paying 12% of the year’s tax by 15 June or 36% by 15 September clears that instalment’s interest. On ₹1,00,000 of tax with ₹10,000 paid by 15 June, the June interest is ₹150. Enter what you paid by each date to see every line.
₹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.
| By | Due in total | Paid | Short | Interest |
|---|---|---|---|---|
| 15 Jun 2026 (15%) | ₹15,000 | ₹10,000 (10%) | ₹5,000 | 3% of ₹5,000 = ₹150 |
| 15 Sep 2026 (45%) | ₹45,000 | ₹35,000 (35%) | ₹10,000 | 3% of ₹10,000 = ₹300 |
| 15 Dec 2026 (75%) | ₹75,000 | ₹65,000 (65%) | ₹10,000 | 3% of ₹10,000 = ₹300 |
| 15 Mar 2027 (100%) | ₹1,00,000 | ₹80,000 (80%) | ₹20,000 | 1% of ₹20,000 = ₹200 |
| Section 425 (234C) interest | ₹950 | |||
Each shortfall is rounded down to a multiple of ₹100 before the rate is applied (rule 269). Amounts paid 16 to 31 March count as advance tax for 234B but are too late for the 15 March instalment.
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 Instalments and 234C table, which lists each due date with the amount due and paid.
Enter the Tax for the year, after TDS and TCS, and choose how you pay.
Type what you actually paid in each window under Advance tax paid.
Read the Short and Interest columns for each instalment and the 234C, instalments short figure in the result.
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.
Section 425(2) waives the interest for the June instalment if at least 12% of the year's tax was paid by 15 June, and for the September instalment if at least 36% was paid by 15 September. The leeway exists because income is hard to predict early in the year. December and March have no such leeway.
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.
Rates and rules change; check the source before you rely on a figure.
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