SNEHLATA VIKRAM RANA SONAM PRATIBHA

Section 207:Advance tax shall be payable in advance during the financial year in respect to the total income of the assessee which would be chargeable to tax for the assessment year immediately following that financial year. Such income is termed as current income. The Tax is Paid as income is earned This Scheme of Advance Payment of Tax is also Called as Pay as you earn income

Section 208: Tax is Paid in Advance when Tax Liability is More than Rs.10,000. Section 210: It is obligatory for every person to pay advance tax according to his/her estimate without any notice from the A.O. However, the A.O is also empowered to issue a notice to any person liable to pay advance tax under Sec.210,directing him to pay tax. This notice can be sent latest by the last day of the February of the previous year.

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Step

Step

Step

89,

I- Estimate the current income of the financial year for which the advance tax is payable. II- Compute tax on such estimated current income at the rate of tax given under Part-III of the first schedule of the relevant finance Act. III- Add surcharge in case of company if applicable and add education cess+ SHEC@ 3% IV- Allow relief, if any, under section 90, 90A, & 91

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V Deduct the tax deductible or collectable at source during the financial year from any income which has been taken into account in computing the current income. Step VI- The balance is the advance tax payable provided it is Rs. 10,000 or more. However, it will be payable in certain instalments .

Section 211: Advance tax shall be payable as per following installments.

For non-company assessee

Due date of instalments On or before 15/09/PY On or before 15/12/PY Amount Payable 30% of advance tax payable. 60% of advance tax payable as reduced by any amount already paid. 100% of advance tax payable as reduced by the amount already paid.

On or before 15/03/PY

For Company assessee

Due date of instalments On or before 15/06/PY On or before 15/09/PY Amount Payable 15% of advance tax payable 45% of advance tax payable as reduced by any amount already paid. 75% of advance tax payable as reduced by any amount already paid. 100% of advance tax payable as reduced by the amount already paid.

On or before 15/12/PY

On or before 15/03/PY

Section 211B: If assessee does not pay advance tax when he is liable to pay then he will be deemed to be assessee in default. Consequences for non-payment of advance tax shall be Assessee is known as assessee in default. Assessee shall be liable to pay interest under section 234C and section 234B. Assessee shall be liable to pay penalty under section 140A(3) which can be maximum of 100% of such tax.

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any assessee does not pay on the specified dates, any installment of the advance tax that he is required to pay, he shall be deemed to be an assessee in default in respect of such instalments and shall be liable to interest and penalty under sections 220 and 221.

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sum, other than a penalty or interest, paid by or recovered from an assessee as advance tax, shall be treated as a payment of tax in respect of the income of the previous year and credit thereof shall be given to the assessee in the regular assessment

 If

advance tax is not paid or the amount of advance tax is paid 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 financial year, under section 234B .

Circumstances under Rate of Interest which interest is payable u/s 234C (1) (2)

Period

Amount on which interest is paid

(3)

(4) 30% of tax due on returned income minus advanced tax paid upto 15th September 60% of tax due on returned income minus total advanced tax paid upto 15th December 100% of tax due on returned income minus total advanced tax paid upto 15th March

Where advance tax Simple interest Three Months paid on or before sept@ 1% p.m. 15th is less than 30% of tax due on returned income Where advance tax Simple interest Three Months paid on or before Dec @ 1% p.m. 15th is less than 60% of tax due on returned income Where advance tax Simple interest One Month paid on or before @ 1% p.m. March 15th is less than 100% of tax due on