Purpose: Imposes interest on taxpayers not paying advance tax timely.
Applicability: Relevant when advance tax not paid as per schedule.
Calculation: Interest at 1% per month on deficit advance tax.
Scenario 1: No advance tax paid, full tax paid later.
Scenario 2: No advance tax paid, adjusted with TDS.
Scenario 3: Paid less than 90% of assessed tax by due date.
Consequence: Interest accrues from end of financial year till actual payment.
Important Note: Paying taxes on time avoids penalties and interest under Section 234B.