The Income Tax Department has extended the ITR filing due date to 15th September 2025 for non-audit taxpayers, impacting interest under Sections 234A, 234B, and 234C but waiving late filing fees.
CA Pratibha Goyal | May 28, 2025 |
ITR Due Date Extended: Impact on Interest u/s 234A, 234B and 234C
The Income Tax Department has extended the due date for filing the Income Tax Return (ITR) for the Financial Year 2024-25 (Assessment Year 2025-26) for the Non-Audit Taxpayers from 31st July 2025 to 15th September 2025.
Let us understand its impact on the applicability of Late Fees and interest under sections 234A, 234B, and 234C in cases of late tax payment.
Late Fees Waived
Since the due date for filing ITR has been extended, this means the late fee for default in furnishing return of income will not be applicable even if you file your ITR after 31st July.
Where a person required to furnish a return of income files a return after the due date, a late fee of Rs 5000 is applicable. However, if the total income of the person does not exceed Rs 500,000, the fee payable under this section shall not exceed Rs 1,000.
Interest under sections 234A, 234B, and 234C
234A: The CBDT has extended due date of furnishing Return u/s 139(1). This means the Due Date for Payment of Tax for the applicability of Interest u/s 234A has also been extended as this is linked with ITR Filing due date.
234B, and 234C:
Interest u/s 234C is applicable on the Late Payment of Advance Tax. It is applicable as per advance tax rules if the Tax is not paid in the Year 2024-25 itself. So in any case, Interest u/s 234C will be applicable if you have delayed Tax payment.
Interest u/s 234B is applicable on the Late Payment of Self assessment Tax. It’s clock starts from 1st April 2025 till the date of payment of tax.
This means that interest u/s 234B and 234C will be applicable on late payment of Tax and are not linked with the ITR filing date.
This can be understood with the help of an example. Mr. A was required to Pay Tax of Rs. 100000 in the financial year 2024-25. He has not paid any Advance Tax in that Financial Year. Due date for Filing ITR for him is 31st July 2025. He files ITR and pays tax on 14th September 2025.
Tax Consequences before the Due Date Extension:
Interest u/s 234A: 2 Months for August and September
100000 X 1% X 2 = Rs 2000
Interest u/s 234B: 6 Months from April to September
100000 X 1% X 6 = Rs 6000
Interest u/s 234C: Rs 5050 calculated as follows:
| Installments for the financial year | Due date | Interest on the Advance tax payable |
| First instalment | 15th June | 15000 X 3 X 1% = Rs 450 |
| Second installment | 15th September | 45000 X 3 X 1% = Rs 1350 |
| Third installment | 15th December | 75000 X 3 X 1% = Rs 2250 |
| Fourth installment | 15th March | 100000 X 1 X 1% = Rs 1000 |
Late Fees of Rs 5000 u/s 234F is also applicable, assuming his total income is more than Rs 500,000.
Total Tax to be paid will be Rs 118050
Tax Consequences before the Due Date Extension:
Interest u/s 234A: Not Applicable
Interest u/s 234B: 6 Months from April to September
100000 X 1% X 6 = Rs 6000
Interest u/s 234C: Rs 5050 calculated as above
Late Fees u/s 234F = 0
Total Tax to be paid will be Rs 111050
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