ICAI Requests Relief on Advance Tax Interest Due to Portal Glitches
The Institute of Chartered Accountants of India (ICAI) has recently submitted a request to the Chairman of the Central Board of Direct Taxes (CBDT) regarding the problems faced by taxpayers while making the payment of advance tax on September 15, 2025.
The institute wrote that while making the payment, the taxpayers faced technical issues. The taxpayers’ bank accounts were debited, but the challans were not generated, and some payments could not be completed. In some cases, the debited amounts were automatically reversed by banks on September 16 as per the instructions from the Reserve Bank of India (RBI) triggered by the portal issues.
The delayed advance tax payments attract interest under Section 234C. But in this case, the delay was due to technical issues, not the taxpayers’ fault. Even though the portal allowed 1 extra day for filing ITR, there was no relaxation for advance tax payments.
The ICAI requested to issue a circular outlining that interest will not be levied under Section 234C for payments that were initiated on or before 15th September 2025 but could not be completed due to portal problems. Further, ICAI suggested giving taxpayers a time of up to 3 days after the circular is released so that they can complete their advance tax payment without interest.
Additionally, they also requested to treat payments made on 16th September 2025 as if they were made on 15th September 2025.
