Interest under 234C wrongly charged on capital gains

Sec 234C interest on deferment of advance tax is not charged on capital gains for instalments due before the gain arose, if tax is paid in the later instalments. The rectification service has a request type called Additional Information for 234C Interest to give the date wise break up.

If you made a gain of ₹4,00,000 on 10 February and paid tax on it by 15 March, interest for June, September and December instalments should not include that gain. If the return did not have the quarter wise break up of capital gains, CPC may charge interest as if the gain was spread across the year. Enter the date wise break up through this request type, and the interest is recomputed.