Advance Tax on property sale | Interest and penalty

Paid Consultation WhatsApp Only 9571243669
https://wa.me/919571243669

Interest and penalty on advance tax are charges levied by the Income Tax Department when an individual or entity fails to pay advance tax as per the specified schedule. Here's a breakdown:

Interest:

Under Section 234B: Interest is levied at 1% per month or part of the month on the amount of advance tax due.
Calculated from the due date of each installment to the date of actual payment.

Penalty:

Under Section 234C: A penalty is imposed for default in payment of advance tax.
The penalty amount is equivalent to the amount of interest levied under Section 234B.

To avoid interest and penalty, it's essential to:

Pay advance tax installments on or before the due dates.
Ensure accurate calculation of advance tax liability.
File Form 26C to revise advance tax payment if necessary.

Remember, advance tax is payable in installments, and timely payment is crucial to avoid additional charges. Consult a tax professional if you need assistance with advance tax calculations or payments.