Has the penal interest increased from 1% to 3% on advance tax payment in the new income tax bill 2025? Here’s what CAs say

The Income Tax Bill 2025 initially contained a drafting error regarding interest calculation for advance tax payment shortfalls. The Lok Sabha Select Committee proposed a correction, setting a 3% interest rate for the first three installments and 1% for the final one. CAs clarify that this change primarily alters the calculation method, without increasing the actual interest burden. So essentially there is no change in law.

from Tax-Wealth-Economic Times https://ift.tt/YprzeSd