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Aug 13, 2025
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FinMin notifies corrigendum to I-T Bill on interest for advance tax short-payment
The finance ministry on Tuesday notified a corrigendum to the Income Tax Bill with regard to interest to be charged on short payment of advance tax by a taxpayer.
The corrigendum, which provides for 3 per cent interest on short payment of advance tax, aligns the clause with the existing provisions in the Income Tax Act, 1961.
Taxpayers having a tax liability of Rs 10,000 or more have to pay advance tax in 4 instalments -- June 15, September 15, December 15 and March 15.
Nangia Andersen LLP, Partner, Sandeep Jhunjhunwala said that as per the corrigendum to Clause 425 of the Income-tax (No 2) Bill, 2025, the interest provision for shortfall in advance tax payment has now been aligned with that under the Income-tax Act, 1961.
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