ITR

Interest on unpaid tax when filing late

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Yes, if tax is unpaid. Sec 234A (now Sec 423) charges 1% a month or part of a month on unpaid tax from the day after the due date until filing. Sec 234B and 234C interest for advance tax may also apply.

Provisions

Sec 234A, Income-tax Act 1961 (now Sec 423, Income-tax Act 2025); Sec 234B, Income-tax Act 1961 (now Sec 424, Income-tax Act 2025); Sec 234C, Income-tax Act 1961 (now Sec 425, Income-tax Act 2025)

Analysis

If all your tax was covered by TDS, Sec 234A interest is nil and only the fee applies. Example: unpaid tax ₹30,000 for AY 2026-27, due date 31 July 2026, filed 5 December 2026. That is August to December, 5 months, so ₹1,500 under Sec 234A. The utility computes it; pay before submitting.

Close

  1. Compute unpaid tax after TDS and advance tax
  2. Let the utility compute Sec 234A, 234B and 234C interest
  3. Pay tax and interest together
  4. File and e-verify

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