advance tax

[Guest]

 what is the consequence of default in payment of advance tax ? is any other penalty is charged   on default in payment except interest payment ?

[Guest]

No penalty is payable. Only interest is payable u/s. 234B and 234C of the IT Act.

[rishi mohan]

When the assessee is in default or is deemed to be in default in making payment of tax, including the tax deducted at source, advance tax and the self assessment tax. Failure to pay the advance tax as directed by the Assessing Officer or as estimated by the assessee.

The amount of penalty leviable depends upon the nature of default.  The relevant section of Income-tax Act prescribe the minimum and maximum penalties which can be levied.

AI Summary

Advance tax default triggers interest liability and may attract penalties depending on the nature of the default. Advance tax default results primarily in an interest liability for delayed or shortfall payment; advisory guidance notes interest is the standard consequence. Penalties are not automatically imposed for failure to pay advance tax, but may be levied depending on the nature of the default and pursuant to statutory penalty provisions prescribing minimum and maximum limits.