Which section of the Income-tax Act, 2025 imposes interest for deferment of advance-tax instalments?
Question and options
Which section of the Income-tax Act, 2025 imposes interest for deferment of advance-tax instalments?
Section 425
Section 424
Section 423
Section 426
Answer and explanation
Correct answer: A - Section 425
Section 425 of the Income-tax Act, 2025 charges interest where the advance tax paid by an instalment date falls short of the instalment due, which is interest for deferment. Section 424 charges interest for failing to pay advance tax, or paying less than 90% of the assessed tax, and section 423 charges interest for late filing of the return.
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