Section 234C Deferment Interest: Instalment Deadlines
Section 234C on 15-Jun/Sep/Dec/Mar shortfalls — why paying all tax in March still triggers deferment interest.
The 60-second version
Section 234C charges interest when advance tax instalments on 15-Jun, 15-Sep, 15-Dec, and 15-Mar fall short of cumulative thresholds — returning NRIs who pay entire tax in March still owe 234C on earlier deferment.
Paying all tax in March does not erase 234C — cumulative instalment thresholds apply from June
Section 234C interest applies when advance tax paid by each due date falls short of 15%, 45%, 75%, and 100% of assessed tax on cumulative basis.
Returning NRIs who receive signing bonus or ESOP exercise in Q4 often defer entire tax to March — 234C accrues on Jun/Sep/Dec shortfalls even if 234B 90% met by year-end.
234B lane: Section 234B guide for overall 90% threshold.
Instalment thresholds
| Due date | Cumulative % | 234C if short |
|---|---|---|
| 15-Jun | 15% | 3 months interest |
| 15-Sep | 45% | 3 months interest |
| 15-Dec | 75% | 3 months interest |
| 15-Mar | 100% | 1 month interest |
Instalment plan
Annual estimate
By May.
15% by Jun
First challan.
45% by Sep
Top-up.
75% by Dec
Review gain.
100% by Mar
Final true-up.
Flow
234C kit
- Tax projection.
- Four challans.
- 26AS TDS.
- 234C worksheet.
- ITR ack.
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Presumptive 44AD
Section 44AD/44ADA taxpayers have different advance tax rules — verify if presumptive scheme applies before using standard 234C thresholds.
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vs 234B?
234B is 90% overall shortfall from 1 April; 234C is instalment timing shortfall on each due date.
One-shot March?
Paying 100% in March still triggers 234C on missed Jun/Sep/Dec cumulative amounts.
TDS credit?
TDS and TCS reduce advance tax due — net instalments after 26AS credits.
RNOR?
If assessed tax is low due to RNOR foreign income exclusion, instalment thresholds scale down proportionally.
Capital gain?
Pay advance tax in quarter gain arises — reduces both 234B and 234C exposure.
Calculator?
ITD portal provides interest calculator — input challan dates and amounts for exact 234C.
Your tax year is already running.
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