Conseqences if Advance Tax Not paid as per Income Tax Act
- You have to pay interest at 1% per month for non-payment or short payment of advance tax under section 234B
- You have to pay interest at 1% per month for delay in payment of advance tax instalments under section 234C
- You may receive a notice from the assessing officer under section 210(3) to pay advance tax on your current year’s income before the last date of February
- if a taxpayer fails to pay advance tax, he may face prosecution under section 276C of the Income Tax Act. If a person wilfully attempts in any manner whatsoever to evade the payment of any tax, penalty or interest under this Act, he shall, without prejudice to any penalty that may be imposable on him under any other provision of this Act, be punishable with rigorous imprisonment for a term which shall not be less than three months but which may extend to 2 years and shall, in the discretion of the court, also be liable to fine.. However, there are some exceptions and conditions for this provision.