Clarification on Interest u/s 234c being charged

[Navneet Jain]

I am a salary professional / individual.

I am trying to file an online ITR 2 for current AY. I have paid the entire tax (FY 24-25) through my employer.

I am eligible for a refund. But ITR portal is showing interest u/s 234C and my refund is getting adjusted after deducting interest amount.

My question is - when have I already paid full tax before 31-Mar-25 (TDS deducted > Tax Payable) and have a refund, why interest u/s 234C being charged?

[Ganeshan Kalyani]

The interest under Section 234C shall be levied if payment of advance tax /TDS in an instalment is less than the prescribed percentage. Check with your employer.

AI Summary

Interest under Section 234C arises when instalment-wise advance tax or TDS payments fall below prescribed thresholds and affect refunds. Interest under Section 234C is levied when instalment payments-advance tax or TDS-are less than prescribed percentage thresholds for particular instalment periods; even if total annual tax paid exceeds liability, instalment-wise shortfalls can trigger interest and result in adjustment against a refund, so verify instalment application with the employer or withholding agent.