Question

      Interest for default in payment of installments of advance tax is levied u/s

    A 234A Correct Answer Incorrect Answer
    B 234B Correct Answer Incorrect Answer
    C 234C Correct Answer Incorrect Answer
    D 234D Correct Answer Incorrect Answer

    Solution

    Interest for default in payment of installments of advance tax is levied under section 234C of the Income Tax Act. Section 234C applies when an assessee is required to pay advance tax in installments during the financial year but fails to do so or pays an amount less than the prescribed amount for each installment. The provision aims to encourage timely payment of advance tax and penalizes the assessee for delaying or underpaying the installments. It ensures that the government receives a steady flow of tax revenue throughout the year rather than waiting until the end of the financial year.

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