Advance Payment of Tax As the name suggests, it refers to paying a part of your yearly taxes in advance.

Advance tax is the income tax payable if your tax liability exceeds Rs 10,000 in a financial year. Advance tax should be paid in the year in which the income is received. Hence, it is also known as the 'payas-you-earn' scheme. No advance tax (also written shortly as Adv. Tax) is payable if the total income tax liability after reducing the tax deducted at source is less than Rs. 10000/-. If Advance Tax is not paid in full for installments falling due on 15th June (for Corporates only), 15th September and 15th December, interest at the rate of 1% on the short amount for 3 months is to be payable. If Advance Tax is not paid in full for installments falling due on 15th March, interest at the rate of 1% on the short amount for 1 month is to be paid. If the payment of the last instalment in March is delayed by even a day, interest is to be paid on the entire instalment amount. Instalments of advance tax and due dates. Advance tax on the current income calculated in the manner laid down in section 209 shall be payable by (a) all the companies, who are liable to pay the same, in four instalments during each financial year and the due date of each instalment and the amount of such instalment shall be as specified in Table below : TABLE Due date of instalment On or before the 15th June On or before the 15th September Amount payable Not less than fifteen per cent of such advance tax. Not less than forty-five per cent of such advance tax, as reduced by the amount, if any, paid in the earlier instalment. Not less than seventy-five per cent of such advance tax, as reduced by the amount or amounts, if any, paid in the earlier instalment or instalments. The whole amount of such advance tax as reduced by the amount or amounts, if any, paid in the earlier instalment or instalments.

On or before the 15th December

On or before the 15th March

REFUNDS Provisions of the Income Tax Act relating to refund of taxes in the event of the tax paid being in excess of the tax liability

WHEN RIGHT TO CLAIM REFUND ARISES [Sec. 237] Where any person satisfies the Assessing Officer that the amount of tax paid by him or on his behalf for any assessment year exceeds the amount with which he is properly chargeable under this Act for that year, he is entitled to the refund of the excess amount paid. WHO CAN CLAIM REFUND? [Sec. 238] Usually refund can be claimed by a person who has made excess payment of tax. If income of a person is included in the total income of another person u/s. 60 to 64, the refund can be claimed by the latter and not by the former. Where a person cannot claim any refund because of his death, incapacity, insolvency, liquidation or other cause, his legal representatives or the trustee or guardian or receiver, as the case may be, will be entitled to claim and receive such refund for the benefit of such person or his estate. HOW TO CLAIM REFUND [Sec. 239] Refund claim should be made in Form No. 30 and verified in the prescribed manner. In the following cases, where an otherwise valid refund claim u/s. 237 is filed by an assessee after the expiry of the time limit, the Assessing Officer, may admit the refund claim if the following conditions are satisfied1. The refund arising as a result of tax deducted at source in respect of the assessment year under the provisions of section 192, 193, 194, 194A, 194B, 194C, 194D and 195 does not exceed ` 10,000; 2. The income returned is not a loss where the assessee claims the benefit of carry forward of the loss; 3. The refund claim is not supplementary in nature; and 4. the amount of the assessee is not assessable in the hands of any other person under any provisions of the Act. Moreover, the A.O. is authorised to admit belated return claims upto ` 50,000 where the following conditions are satisfied (i) the refund arising as a result of excess advance tax payment in respect of assessment year under the provisions of sec. 208, does not exceed ` 10,000; (ii) the returned income is not a loss, where the assessee claims the benefit of carry forward of the loss; (iii) the refund claimed is not supplementary in nature, i.e. a claim for additional amount of refund after the completion of the original assessment for the same assessment year ; and (iv) the income of the assessee is not assessable in the hands of any other person under section any provisions of the Act. INTEREST ON REFUND [Sec. 244A] Interest on Refund of Income Tax: Where refund of any amount becomes due to the assessee under the Income Tax Act, he shall be entitled to receive, in addition to the said amount, simple interest on the refund calculated in the following manner: (a) Where the refund is out of any tax deducted at source/ tax collected at source or advance tax paid during the financial year, interest will be paid at the rate of %, per month or part of a month from the period starting from 1st day of April of the assessment year to the date on which refund is granted.

However, no interest shall be payable if the amount of refund is less than 10% of the tax determined u/s 143(1). (b) In other cases, interest shall be paid @ % per month for every month or part of month for the period commencing from the date of payment of tax or penalty to the date on which refund is granted. SET OFF OF REFUNDS AGAINST THE REMAINING PAYABLE [Sec. 245] Where a refund is found to be due to any person, the tax authorities may, in lieu of payment of the refunds, set off the amount of refund against the sum payable under the Income-tax Act.