Income Tax & Compliance Calculator

Advance Tax & Interest (234B & 234C) Calculator

Schedule your quarterly advance tax installments, verify statutory safe-harbour buffers (12% in Q1, 36% in Q2), and calculate penal interest under Sections 234A, 234B, and 234C with Rule 119A statutory rounding.

Quick Scenarios

1. Taxpayer Category & Exemption Status

Select filing regime and statutory exemption criteria

Applicable Taxpayer Category

Senior Citizen (Age 60+) without business/professional income

Exempt from advance tax under Section 207(2) of the Income-tax Act

2. Estimated Tax Liability

Net assessed tax after TDS/TCS deduction

Estimated Gross Income Tax Liability (₹)

Total estimated tax payable for the financial year

TDS / TCS Already Deducted by Payers (₹)

Tax credits deducted at source by clients, banks, or buyers

3. Advance Tax Paid in Financial Year

Enter actual payments made against each statutory installment

1st Installment (Paid on or before 15 June) (₹)

Target: 15% of assessed tax (12% safe harbour buffer)

2nd Installment (Paid between 16 June & 15 Sept) (₹)

Target: 45% cumulative (36% safe harbour buffer)

3rd Installment (Paid between 16 Sept & 15 Dec) (₹)

Target: 75% cumulative

4th Installment (Paid between 16 Dec & 15 March) (₹)

Target: 100% cumulative

Tax Paid between 16 March & 31 March (₹)

Counts towards Section 234B 90% threshold, but not Q4 234C

4. Return Filing & Assessment Dates

Timeline for Section 234B & 234A interest calculations

Months Elapsed from 1 April of Assessment Year (Section 234B)

Default is 4 months for on-time July 31 ITR filing (April, May, June, July)

Delayed Months Beyond Due Date (Section 234A)

0 if return is filed on or before statutory due date (e.g. 31 July / 31 Oct)

Advance Tax Calculation & Interest Summary

Total Amount Payable (Tax + Penalties)₹₹16,200.00

Net Assessed Tax (After TDS): ₹₹1,00,000.00
Total Advance Tax Paid by 31 March: ₹₹85,000.00
Section 234C Interest (Deferment): ₹₹600.00
Section 234B Interest (Default): ₹₹600.00
Total Interest Penalties (234A + 234B + 234C): ₹₹1,200.00

Section 234B Status (90% Threshold Check)

Statutory 90% threshold: ₹₹90,000.00. Total advance tax paid by 31 March: ₹₹85,000.00.

Default under Section 234B: Advance tax paid is below 90% of assessed tax. Interest is charged on the shortfall of ₹₹15,000.00 @ 1% per month for 4 months = ₹₹600.00.

Statutory Note: Interest is computed at 1% per month on the shortfall rounded down to the nearest multiple of ₹100 per Rule 119A of the Income-tax Rules, 1962.

Quarterly Installment Schedule & Section 234C Analysis

Detailed quarterly assessment with statutory buffers (12% in Q1, 36% in Q2) and Rule 119A rounded shortfalls.

Installment	Statutory Due Date	Required Cumulative Target	Actual Cumulative Paid	Statutory Shortfall	Section 234C Interest	Compliance Status
1st Installment (15%)	15 June	₹₹15,000.00(15%)	₹₹10,000.00	₹₹5,000.00	₹₹150.00(1% × 3 mo)	Shortfall (Penalty Applied)
2nd Installment (45%)	15 September	₹₹45,000.00(45%)	₹₹40,000.00	₹0	₹0	Safe Harbour Buffer
3rd Installment (75%)	15 December	₹₹75,000.00(75%)	₹₹65,000.00	₹₹10,000.00	₹₹300.00(1% × 3 mo)	Shortfall (Penalty Applied)
4th Installment (100%)	15 March	₹₹1,00,000.00(100%)	₹₹85,000.00	₹₹15,000.00	₹₹150.00(1% × 1 mo)	Shortfall (Penalty Applied)

How it works

Under Section 208 of the Income-tax Act, 1961, any taxpayer whose estimated net tax liability (after subtracting TDS and TCS) is ₹10,000 or more in a financial year is obligated to pay advance tax in quarterly installments. For regular corporate and non-corporate assessees, the mandatory schedule under Section 211 is: 15% by 15 June, 45% by 15 September, 75% by 15 December, and 100% by 15 March. For taxpayers opting for presumptive taxation under Section 44AD or 44ADA, 100% of advance tax is payable in a single installment on or before 15 March. Section 234C levies simple interest at 1% per month for deferment of quarterly installments (with statutory relief buffers of 12% in Q1 and 36% in Q2). Section 234B levies simple interest at 1% per month from 1 April of the Assessment Year if total advance tax paid by 31 March is less than 90% of assessed tax. Section 234A levies 1% per month on unpaid tax for delays in filing the Return of Income beyond the statutory due date. Under Rule 119A of the Income-tax Rules, 1962, the tax amount on which interest is computed is rounded down to the nearest multiple of ₹100, ignoring fractions.

Example

A partnership firm estimates its net income tax liability for FY 2025-26 at ₹1,00,000. It pays ₹10,000 in Q1 (10% < 12% buffer; shortfall against 15% is ₹5,000; Section 234C interest = ₹5,000 × 1% × 3 months = ₹150). In Q2, it pays ₹30,000, bringing cumulative payment to ₹40,000 (40% ≥ 36% buffer; within safe harbour; Section 234C interest = ₹0). In Q3, it pays ₹25,000, bringing cumulative payment to ₹65,000 (shortfall against 75% is ₹10,000; Section 234C interest = ₹10,000 × 1% × 3 months = ₹300). In Q4, it pays ₹20,000 on 14 March, bringing cumulative payment to ₹85,000 (shortfall against 100% is ₹15,000; Section 234C interest = ₹15,000 × 1% × 1 month = ₹150). Total Section 234C interest is ₹600. Because total advance tax paid by 31 March (₹85,000) is less than 90% of assessed tax (₹90,000), Section 234B applies on the shortfall of ₹15,000. For an on-time return filed on 31 July (4 months elapsed from 1 April), Section 234B interest is ₹15,000 × 1% × 4 = ₹600. Total interest is ₹1,200, and final amount payable is ₹16,200.

Frequently asked questions

Who is required to pay Advance Tax in India?

Under Section 208 of the Income-tax Act, every person (salaried individual, freelancer, consultant, partnership firm, LLP, or company) whose estimated total tax liability for the financial year after deducting TDS and TCS is ₹10,000 or more must pay advance tax.

Are senior citizens exempt from paying Advance Tax?

Yes. Under Section 207(2) of the Income-tax Act, an individual resident in India who is 60 years of age or older during the financial year and has NO income chargeable under the head 'Profits and gains of business or profession' is exempt from advance tax. They can pay their entire tax liability as self-assessment tax without any Section 234B or 234C interest.

What are the safe harbour buffers under Section 234C?

To protect taxpayers against uncertain business estimates, Section 234C provides statutory relief buffers for the first two quarters: If you pay at least 12% by 15 June (instead of the standard 15%), or at least 36% by 15 September (instead of the standard 45%), no Section 234C deferment interest is charged for that quarter.

How does Advance Tax work for Presumptive Taxation (Sections 44AD and 44ADA)?

Taxpayers who declare income under Section 44AD (small businesses) or Section 44ADA (professionals like software developers, lawyers, doctors, accountants) are exempt from paying quarterly installments in June, September, and December. They are required to pay 100% of their advance tax in a single installment on or before 15 March.

Can I pay advance tax between 16 March and 31 March to save interest?

Under the proviso to Section 211(1), any amount paid on or before 31 March of the financial year is treated as advance tax. Paying before 31 March will count towards the 90% threshold for Section 234B, potentially saving thousands in default interest from 1 April onwards. However, it will not eliminate the Q4 Section 234C penalty (1% for 1 month) because the Q4 statutory deadline is 15 March.

What is Rule 119A rounding for interest computation?

Rule 119A of the Income-tax Rules mandates that in calculating interest payable by the assessee under Sections 234A, 234B, and 234C, the amount of tax shortfall shall be rounded off to the nearest multiple of ₹100 by ignoring any fraction of a hundred rupees. Furthermore, any fraction of a month is counted as a full month.