Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: ACCOUNTING STANDARD :: list of goods taxed at 4% :: ARTICLES ON INPUT TAX CREDIT IN VAT :: articles on VAT and GST in India :: due date for vat payment :: cpt :: form 3cd :: TDS :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: empanelment :: VAT Audit :: VAT RATES :: TAX RATES - GOODS TAXABLE @ 4% :: ACCOUNTING STANDARDS :: Central Excise rule to resale the machines to a new company
 
 
News Headlines »
 Securities excluded from GST ambit in revised Bill
 GST dilemma: Hope fades for new tax regime
 5nance.com launches tax investment platform
 Is government tapping your phone?
 Income tax department to use analytics to look for discrepancies in bank accounts
 GST Council fails to break deadlock over indirect tax regime, next meet on Dec 11 and 12 to hammer out differences
 Invoking Writ Jurisdiction For Income Tax Matters
 How to file income-tax returns online
 How Income Tax Returns Are Scrutinised
 All About New Income Disclosure Scheme to make Demonetisation successful
 Your deposit may draw income tax notice

Have you missed paying advance tax on March 15th?
March, 21st 2015

It was a Sunday and you may have forgotten the advance tax deadline of March15. Wondering what will be the impact? Do not worry- you can still pay and comply. But before rushing to pay your tax, understand how it all works.

Advance tax is based on the principle of “pay as you earn”. It is collected even before the income tax becomes payable and the installments are payable during the financial year itself.

Advance Tax is payable only when the amount of income tax payable by the assessee during that year is Rs.10,000 or more. Resident individuals who are over 60 years of age (senior citizen) and do not have business income are not required to pay advance tax. Further, no advance tax is payable in case of assessees covered under section 44AD (presumptive taxation). Corporate assessees liable to pay tax on the basis of Book Profit (MAT) are required to pay advance tax.

Advance tax is payable only on estimate basis. While computing liability for advance tax, income-tax calculated on the current income estimated by the assessee shall be reduced by TDS deducted / TCS collected, MAT /AMT credit, relief under tax-treaty. After making payment of first/second instalment of advance tax, the assessee can revise the remaining instalment(s) of advance tax in accordance with his revised estimate of current income and pay tax accordingly.

The Income Tax Act has given a scheme of payment i.e., four instalments in case of companies i.e., 15th June, 15th September, 15th December, and 15th March and three installments for non-corporate assesses i.e. 15th September, 15th December and 15th March. As per the CBDT Circular No. 676 of 1994 if the last day for payment of any instalments of advance tax is a day on which the receiving bank is closed, the taxpayer can make the payment on the next immediately following working day, and in such cases, the mandatory interest leviable under section 234B and section 234C would not be charged. Where payment of advance tax is made by a cheque, the date of payment of advance tax in such case would be the date of the presentation of the cheque and not the date of clearing, if it is not dishonoured.

All incomes (including capital gains, winnings from lotteries, crossword puzzles, etc.) are liable for advance tax. However, it is not usually possible for an assessee to estimate his capital gains or winnings from lotteries, etc. Thus, in such cases, it is provided that if any such income arises after the due date of any installment, then, the entire amount of tax payable (after deduction of TDS, if any) on such capital gain or casual income should be paid in remaining installments of advance tax which are due or where no such installment is due, by 31st March of the relevant Financial Year. If the entire amount of tax payable is so paid, then no interest on late payment will be leviable.

In case, the assessee has not paid any advance tax or paid advance tax but which is less than 90% of the assessed tax, the assessee shall be liable to pay simple interest @ 1% per month from first day of April following the financial year, under section 234B.

Likewise, in case the payment of advance tax is deferred beyond the due dates as per the prescribed limits, interest @1% per month, for a period of 3 months, will be payable for every deferment, except for the last installment of 15th March where it will be 1% for one month, under section 234C .

 

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Custom Software Development Outsourcing Custom Software Development Offshore Cus

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions