The Finance Ministry has on August 12 notified a corrigendum to the new Income-Tax Bill 2025, which clarifies the interest to be charged on short payment of advance tax by a taxpayer, according to a PTI report.
This corrigendum provides for 3 per cent interest on short payment of advance tax, and aligns the new Bill’s clause with the existing provisions in the Income Tax Act, 1961.
Taxpayers having a tax liability of ₹10,000 or more have to pay advance tax in four instalments — June 15, September 15, December 15 and March 15.
‘Interest provision now aligned with I-T Act, 1961’
Sandeep Jhunjhunwala, Partner at Nangia Andersen LLP, told PTI 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.
“If there is a shortfall in remittance of advance tax even for a day beyond the statutory quarterly due date, interest is charged for a minimum of 3 months,” he stated.
Lok Sabha passes revised new I-T Bill 2025
The Lok Sabha, on August 11, passed the modified new Income-Tax Bill, 2025 and the Taxation Laws (Amendment) Bill, 2025, shortly after Finance Minister Nirmala Sitharaman tabled the revised version in Parliament.
Now, the Bill must be passed by the Rajya Sabha to replace the current Act, and then it will seek the President’s nod. Once enacted, the new I-T Bill will replace the archaic six-decade-old income tax law. The legislation will make tax law simple by reducing the number of chapters and wordage.
