Advance Tax
Every person is liable to pay Advance Tax if advance tax payable is RS 10000 or more.
In the case of a resident senior citizen aged 60 years or more & does not have any income from business & profession is not liable to pay advance tax .
Computation of advance tax
Estimated taxable income for the year | XXX |
Tax on the Estimated Income | XXX |
Less :-Tax deducted or collected at source | (XXX) |
Amount payable as Advance Tax | XXX |
When Advance Tax payment become Due
Due Date | In case of corporate Assessee | In case of non corporate Assessee |
15/6/PY | 15% of advance tax payable | |
15/9/PY | 45% of advance tax payable less amount paid earlier | 30% of advance tax payable |
15/12/PY | 75% of advance tax payable less amount paid earlier | 60% of advance tax payable less amount paid earlier |
31/3/PY | 100% of advance tax payable less amount paid earlier | 100% of advance tax payable less amount paid earlier |
Interest payable by assessee
Section 234 A Interest for default in furnishing return of income
· Where the return of income for assessment year is furnished after the due date in section 139 (1) or 142 (1) or is not furnished
· Liable to pay simple interest @1% p.m. or part thereof
· The interest shall be payable for the period commencing from the date immediately following due date and
a) Till the date when the return is furnished after due date
b) If no return furnished ,till the date of completion of assessment u/s 144 (Best Judgement Assessment )
Section 234 B Interest in default in payment of Advance Tax
· If the assessee fails to pay advance tax or advance tax paid is less than 90 % of the assessed tax
· Liable to pay simple interest @1% p.m. or part thereof
· The period for which interest is payable would be the period from the 1st day of April next following the financial year to the date of determination of total income u/s 143 (1)
· The interest will be charged on the amount equal to assessed tax or the amount by which advance tax falls short of assessed tax
Section 234 C Interest for deferment of Advance Tax
In case of Companies :-It has been provided that the shortfall for the purpose of charging interest for deferment of advance tax ,in case of companies which are liable to pay advance tax shall be the difference between :-
a) 15% of the tax due on the assessed income & the advance tax paid by the co. On or before 15thJune
b) 45% of the tax due on the assessed income & the advance tax paid by the co. On or before 15thSeptember
c) 15% of the tax due on the assessed income & the advance tax paid by the co. On or before 15thDecember
Notes :- It has also been provided that where the advance tax paid by the company on or before 15thJune not less 12% on assessed income & the advance tax paid on or before 15thSeptember is not less than 36% of assessed income ,then the company will not be liable to any interest on the amounts of the shortfalls on the aforesaid date.
In case of any other assessee :- It has been provided that the shortfall for the purpose of charging interest for deferment of advance tax ,in case of any other assessee which are liable to pay advance tax shall be the difference between :-
d) 15% of the tax due on the assessed income & the advance tax paid by the co. On or before 15thJune
e) 45% of the tax due on the assessed income & the advance tax paid by the co. On or before 15thSeptember3.
· The assessee is liable to pay simple interest at the rate of 1% p.m. or part thereof on the amount of the shortfall from the tax on due date on assessed income