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?
Taxpayer faces Section 234C interest charge despite full TDS payment before due date reducing refund amount An individual taxpayer filed an income tax return claiming a refund after full tax payment through employer TDS before the due date. Despite this, the tax portal showed interest charged under Section 234C, reducing the refund amount. The explanation provided clarified that interest under Section 234C is applicable if advance tax or TDS installments are less than prescribed percentages at specified dates. The taxpayer was advised to verify with the employer regarding the timing and adequacy of TDS installments to understand the interest charge. (AI Summary)