Section 234C → Section 272
Interest for deferment of advance tax
Quick Answer
Section 234C of the Income Tax Act, 1961 (Interest for deferment of advance tax) corresponds to Section 272 of the Income-tax Act, 2025, effective 1st April 2026. Status: Retained.
What changed for Section 234C
The starting point is Section 234C of the Income Tax Act, 1961 — interest for deferment of advance tax. Interest for missing or underpaying specific quarterly installments of advance tax.
From 1st April 2026, the same subject sits at Section 272 of the Income-tax Act, 2025 — retained and renumbered as Section 272 of the Income-tax Act, 2025. Retained. No interest is levied if the shortfall is due to an unexpected Capital Gain or Virtual Digital Asset profit, provided tax is paid in the remaining installments.
For Section 234C, the practical impact is rated High. Essential logic for quarterly tax planning.
Sec 234C
Provision Summary
Interest for missing or underpaying specific quarterly installments of advance tax.
Sec 272
Provision Summary
Retained. No interest is levied if the shortfall is due to an unexpected Capital Gain or Virtual Digital Asset profit, provided tax is paid in the remaining installments.
Key Changes & Highlights
- Protection for unexpected Crypto/Stock market gains explicitly maintained.
Related Sections
Related Articles from the Tax Academy
chapter via deductions
No Deduction for Interest on Tax Loans Under Income-tax Act, 2025: A Guide
Expert analysis on why the deduction for interest on tax loans (old Sec 80V) will not return in the Income-tax Act, 2025. Understand the impact on your finances.
global tech employees
Foreign Dividend Tax Guide 2026: New Income-tax Act, 2025 Rules for Tech Employees
A detailed guide on the new Income-tax Act, 2025 for Indian tech employees. Understand the tax on foreign dividends, Schedule OS & FA reporting for RSUs, and FTC.
old vs new scheme
234B Interest on Tax Shortfall: Income-tax Act, 2025 vs Old Law Guide
A professional guide on calculating Section 234B interest under the new Income-tax Act, 2025 Default Regime vs the old 1961 Act, focusing on contingent debt.
Frequently Asked Questions
What is Section 234C of the Income Tax Act, 1961 about?
Section 234C of the Income Tax Act, 1961 covers interest for deferment of advance tax. Interest for missing or underpaying specific quarterly installments of advance tax.
Which section replaces Section 234C in the Income-tax Act, 2025?
Section 234C of the Income Tax Act, 1961 maps to Section 272 of the Income-tax Act, 2025, effective 1st April 2026 (status: Retained). Retained. No interest is levied if the shortfall is due to an unexpected Capital Gain or Virtual Digital Asset profit, provided tax is paid in the remaining installments.
What is the impact of the change to Section 234C under the new tax code?
The transition impact for Section 234C is rated High. Essential logic for quarterly tax planning.
What should I watch out for when Section 234C moves to the 2025 code?
Protection for unexpected Crypto/Stock market gains explicitly maintained. These points are specific to Section 234C (Interest for deferment of advance tax).
Disclaimer: This mapping of Section 234C (Interest for deferment of advance tax) to Section 272 of the Income-tax Act, 2025 is for educational and reference purposes only, based on publicly available drafts and circulars. As Section 234C is currently marked Retained, always confirm its treatment with a qualified Chartered Accountant before filing or making compliance decisions.
Need professional help on Section 234C?
Compare trusted providers — both offer CA services ready for the Income-tax Act, 2025.
*Affiliate links — we may earn a small commission at no extra cost to you. Disclosure.
Want to calculate tax on this section?