Section 234A - Interest for Default in Filing Income Tax Return
Interest at 1% per month (or part thereof) on tax payable when ITR is filed after the due date (July 31 / October 31). Calculated from the due date until actual filing date.
Key provisions
- Rate: 1% per month (simple interest, not compound) on tax payable
- Tax payable = Total tax − Advance tax paid − TDS − TCS
- Calculated from July 31 (due date) to date of filing return (each partial month counts as full month)
- Late filing fee under Section 139(4): ₹5,000 (₹1,000 if income ≤ ₹5 lakh) - in addition to 234A interest
- If TDS has fully covered tax liability (i.e., tax payable = 0), no 234A interest applies
- Interest under 234A is not deductible as a business expense
FAQs
234A interest = 1% × ₹1,00,000 × 2 months = ₹2,000. This is in addition to the late filing fee of ₹5,000 (or ₹1,000 if income ≤ ₹5 lakh). Total additional cost of filing 2 months late = ₹7,000.
Use via API
GET/v1/tax-law/sections/by-2025-ref/273
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REQUEST · cURL
curl https://api.thynktax.com/v1/tax-law/sections/by-2025-ref/273
RESPONSE · 200 OK
{
"act_2025_ref": "273",
"old_reference": "Section 234A, Income Tax Act 1961",
"title": "Section 234A - Interest for Default in Filing Income Tax Return",
"category": "Interest & Penalties",
"limit_or_rate": "1% per month on tax due",
"applicable_to": "All assessees",
"effective_from": "2026-04-01"
}