Section 234B → Section 271
Interest for default in payment of advance tax
Quick Answer
Section 234B of the Income Tax Act, 1961 (Interest for default in payment of advance tax) corresponds to Section 271 of the Income-tax Act, 2025, effective 1st April 2026. Status: Retained.
What changed for Section 234B
Section 234B of the 1961 Act sets out the rules on interest for default in payment of advance tax. Interest @ 1% per month if advance tax paid is less than 90% of the assessed tax.
The new code maps this to Section 271: the provision is retained and renumbered as Section 271 of the Income-tax Act, 2025, applying from 1st April 2026. Retained. Applies if no advance tax is paid or if the total payment is insufficient.
On the ground, changes to Section 234B carry a High impact. Major cost for taxpayers who underestimate their income.
Sec 234B
Provision Summary
Interest @ 1% per month if advance tax paid is less than 90% of the assessed tax.
Sec 271
Provision Summary
Retained. Applies if no advance tax is paid or if the total payment is insufficient.
Key Changes & Highlights
- The 90% threshold remains the legal trigger for this interest.
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Frequently Asked Questions
What does Section 234B of the Income Tax Act 1961 deal with?
Section 234B of the Income Tax Act, 1961 covers interest for default in payment of advance tax. Interest @ 1% per month if advance tax paid is less than 90% of the assessed tax.
Where does Section 234B of the ITA 1961 go under the Income-tax Act, 2025?
Section 234B of the Income Tax Act, 1961 maps to Section 271 of the Income-tax Act, 2025, effective 1st April 2026 (status: Retained). Retained. Applies if no advance tax is paid or if the total payment is insufficient.
Why does the change to Section 234B matter for taxpayers?
The transition impact for Section 234B is rated High. Major cost for taxpayers who underestimate their income.
What are the key changes to Section 234B under the Income-tax Act, 2025?
The 90% threshold remains the legal trigger for this interest. These points are specific to Section 234B (Interest for default in payment of advance tax).
Disclaimer: This mapping of Section 234B (Interest for default in payment of advance tax) to Section 271 of the Income-tax Act, 2025 is for educational and reference purposes only, based on publicly available drafts and circulars. As Section 234B is currently marked Retained, always confirm its treatment with a qualified Chartered Accountant before filing or making compliance decisions.
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