My company pays bonuses in March because of which my taxable income also increases quite a lot. Because of this, I am being charged penalty fee under section 234C due to shortfall of meeting -
- 15% advance tax payment by 15 June,
- 45% by 15 September,
- 75% by 15 December,
- 100% by 15 March. (We got bonus here, because of which previous quarter percentages increase a lot, and shortfall is created on which we are charged interest)
Isn't this common for a lot of employees? You get annual bonuses at year end in March and we pay the corresponding tax in March, so why does India charge us the shortfall amount for the initial three quarters where we didn't receive any bonus at all?