Don’t Wait For The ITR Deadline-Pay Your Taxes Early
                     Don’t Wait For The ITR Deadline: Pay Your Taxes Early
. The deadline for filing Income Tax Returns is fast approaching. Although the due 
date for non-audit taxpayers has been extended to September 15, 2025, it is 
advisable not to wait, at least for tax payment, until the due date of ITR filing. 
Delaying tax payment until the return filing date may result in additional interest 
charges under Sections 234B and 234C of the Income Tax Act. Let us try to 
understand this with the help of an Illustration. 2. Illustration: Mr. Anupam is a 
salaried individual with a gross salary of Rs.7,75,000. Since his net tax liability was 
nil (after availing of the Section 87A rebate), his employer did not deduct any tax at 
source (TDS) from his salary. However, Mr. Anupam also earns Rs.1,50,000 from 
interest income, from which the bank has deducted TDS at 10%. His tax liability for 
the financial year 2024–25 is calculated as follows:

• 3. 
Mr. Anupam remained unaware of his tax liability of Rs. 21,400 and did not pay by 31st 
March 2025. As a result, he is liable to pay interest under Section 234B until the 
date the tax is paid. Any further delay in payment — especially postponing it until 
the ITR due date — will only lead to a higher interest outgo. The interest under 
Section 234B continues to accrue for each month of delay until the tax is fully paid.
 4. Section 234B mandates interest on taxpayers who fail to pay advance tax or pay 
less than 90% of their assessed tax. This interest is calculated at 1% per month or 
part thereof on the unpaid amount. The interest period begins on April 1st, the day 
following the financial year’s end, and continues until the actual payment date.
• 5. The calculation below will explain how the postponing payment until the ITR 
deadline can lead to a substantial increase in interest liability.


• 8. Section 234C will not be applicable if the shortfall in payment on 
advance tax in any instalment is due to under-estimation or failure to 
estimate (a) Capital Gain amount (b) Income from winning from lotteries, 
crossword puzzle, etc (c) Income from a new business etc. 9. Conclusion: 
Although the due dates have been extended and the utilities for ITR-2 and 
ITR-3 are yet to be enabled on the portal, it is strongly recommended to 
compute tax liability at the earliest and pay any outstanding dues without 
delay. Acting promptly not only helps avoid unnecessary interest but also 
ensures peace of mind and compliance with tax regulations. Disclaimer: 
The article is for educational purposes only. The author can be approached 
at [email protected]
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