Section 234C - An Interesting One.

[sathyanarayanan kasinathan]

A company has paid the first installment(full 15%) by June 17th, instead of the stipulated June 15th. I'd like to know whether the Interest payable u/s 234C should be calculated using '3' months or only '1'month, since the delay is only 3 days.

AI Summary

Interest Under Section 234C: Charge Only for Actual Delay, Not Full Three Months, in Tax Installment Payment. A company paid its first income tax installment two days late, on June 17th instead of June 15th, and sought clarification on whether interest under Section 234C should be calculated for three months or just one month due to the short delay. The response clarified that interest should be charged only for the actual period of default, not for the full three months, referencing a relevant case for further guidance.