• Mar
  • 15
  • 2014

Advance Tax Provisions, Payment Challan & e-payment Utility

Article ID 37211 | Posted In Income Tax | | 9 Comments » Print Friendly and PDF

CA Sandeep Kanoi

According to the Income Tax Act, assessees are required to pay tax in advance in a previous year if their tax liability for the year is likely to be Rs 10,000 or more. Advance tax is payable on the total income of an assessee that is chargeable to tax in an assessment year.

Every income, including capital gains, casual income etc is liable to payment of advance tax. Advance tax is applicable to all those who have income in India, irrespective of their residential status . Tax on your salary will be deducted by your employer.

If you have income from any other sources such as rental income, income from shares or bank interest, you will be responsible to pay the final schedule of advance tax. Failing to pay advance tax will attract interest which has to be paid while filing your tax returns.

An assessee needs to approximate the tax liability for the previous year based on projected income, which is likely to accrue to him. An assessee has to compute tax on the estimated current income at the rate in force in the relevant previous year.

The statement of estimated income need not be submitted to the income tax authorities while paying the advance tax.

From the tax so computed, any tax deducted at source has to be subtracted. After paying the first installment of advance tax, an assessee can revise his estimate of current income. Assessees have to pay advance tax on such revised income in the remaining installments.

Under the Income Tax Act, the total tax liability has to be paid in installments as advance tax on or before specified due dates.

Credit is given to the assessee in respect of advance tax paid by him at the time of determining his final tax liability. Any remaining amount has to be paid as self-assessment tax before the income tax return is filed. If advance tax paid is in excess, it will be refunded to him.

Payment of advance tax depends on the status of the assessee. The advance tax is to be paid in the following installments on the following dates:

  • For Non-Corporate Assessee
    • On or before 15 September – not less than 30% of tax payable for the year
    • On or before 15 December – not less than 60% of tax payable for the year
    • On or before 15 March – not less than 100% of tax payable for the year
  • For Corporate Assessee
    • On or before 15 June – not less than15% of tax payable for the year
    • On or before 15 September – not less than 45% of tax payable for the year
    • On or before 15 December – not less than 75% of tax payable for the year
    • On or before 15 March – not less than 100% of tax payable for the year

However, any payment of advance tax made before March 31 will be treated as advance tax paid during the financial year.

If an assessee defaults on paying advance tax or if he fails to deposit the exact percentage of advance tax before the specified due dates, he is liable to pay penal interest under the Income Tax Act.

According to Section 234B of the Act, interest is payable if an assessee who is liable to pay advance tax fails to pay it or if he pays less than 90 percent of the assessed tax (that is, tax on the total income declared by the assessee minus tax deducted at source).

Simple interest at one percent for every month or part of the month is payable on assessed tax minus advance tax paid, if any, from April 1st of the following financial year to the date of determination of total income under Section 143(1), or the date of regular assessment, if it is made. For the purpose of calculation , any fraction of a month is deemed to be a full month.

According to Section 234C of the Income Tax Act, interest is payable if an assessee has not paid advance tax or underestimated the advance tax due. In this case also, simple interest at one percent per month is payable on a specified amount for a specified period.

In case the last day for payment of any installment is a holiday, the payment can be made on the next working day. In such a case, interest will not be charged. Interest is not levied for any shortfall in the payment of advance tax on account of underestimation or failure to estimate capital gains (short or long term) and casual income.

An assessee should pay the entire tax payable in respect of such income in the remaining installments of advance tax which are due, or if no such installment is due, such tax should be paid before March 31 of the financial year.

If despite a legal obligation on an assessee to pay advance tax he fails to do so, the assessing officer concerned may ask him to pay it on his current year’s income. Such an order must be passed during the financial year itself.

It cannot be passed later than the last day of February. In case an assessee’s own estimate is less than this amount, he needs to inform the assessing officer. However, in case the assessee’s estimate is higher, no intimation needs to be made and the tax should be deposited.

Download Income Tax Payment Challan in Excel Format

Challan form for depositing Income Tax ITNS 280 Excel Format
Challan Form for depositing Tax Deducted at Source (TDS) or Tax Collected at Source (TCS) ITNS 281 Excel Format
Challan form for depositing Securities Transaction Tax or Hotel Receipt Tax or Expenditure/Other Tax or Estate Duty or Wealth Tax or Gift Tax ITNS 282 Excel Format
Challan Form for depositing Banking Cash Transaction Tax or Fringe Benefits Tax ITNS 283 Excel Format

Excellent utility for those paying direct taxes online: – I recently notices a very good utility developed by Fast Facts Computer Systems Limited. The excel utility is named by them as”e-Payment Auto Filler”. In this utility you can save your details which you have to fill every time you pay tax online i.e. TAN, PAN, Name, Assessment, Year, Address Etc. Once you fill these details in this utility, NSDL e-Payment Web page automatically opens and details in Excel row get auto-filled in web page.

e-Payment Auto Filler
» MS Excel based. Macros used.
» Enter the PAN/ TAN details once.
» NSDL e-Payment Web page automatically opens and details in Excel row get auto-filled
» Utility is available for ITNS 280, ITNS 281, ITNS 282, ITNS 283

Download the Utility

Direct Link:- http://www.fastfacts.co.in/resources/ePayment-Autofiller.xls

(Republished with Amendments)

9 thoughts on “Advance Tax Provisions, Payment Challan & e-payment Utility”

  1. Avinash says:

    If assessee has received sale consideration in kind and there is huge capital gain , but assessee don’t have enough cash to his tax liability what will be the consequences???


    i bought a flat in 1981-82 at rs. 58824, spent for improvement rs. 140000 and sold it on 19th sept.2014 at 1200000.tell me how much capital tax i have to pay.

  3. JAGADEESH says:


  4. SUMIT GUPTA says:

    Dear, Sir/Maam

    Hello sir/maam my self sumit i am a CA student at IPCC level and now i am doing Articleship. Thanks for giving me such information, if you have more information about income tax or any updation under income tax plz mail me that infomation or updation. My mail-id is sumitgupta2501@gmail.com


  5. Assanchand Jain says:

    I am a senior citizen retired as a teacher from VJTI Mumbai. Treasury Office Thane is going to deduct TDS on from my pension once in the year in March.
    Similarly last installment of 6th pay revision from VJTI [if I receive in this year(2014-2015)]will be paid after deducting TDC. In other income I shall be having interest of FD(s) and saving bank a/c(s) interest.In interest of FD(s) TDS will be deducted. Following are my queries:
    1. Is The value of advance tax found after subtracting from estimated
    income tax the above three TDS(s)(estimated). (as ) going to
    consider the above estimated TDS?
    2. Should I consider the above TDS (estimated) (which will be deducted
    after 15/09/2014), from estimated income Tax for payment of the advance tax 1st installment?
    3. What is the limit for considering the estimated income tax so
    arrived as advance tax?
    Your valuable advice will be awaited by me in my mail.

  6. manjunath shanbhogue says:

    Dear sir, thanks for the very useful information. But what about senior citizens? I thought they are exempted from payment of advance tax if they do not have business income. Can you please throw some light? MANY THANKS.

  7. Padmakumar V.A says:

    The utility enclosed along with the tax tip was very useful. But it is not working on windows7. We don’t know who had developed this. But they had done an excellent job. We wish they could enhance this utility for windows7 and windows8 too.

  8. prakhar says:

    what about self assessment tax if total tax payable is above rs. 10000. e.g. total tax liability of rs. 23000 = advance tax paid rs 20000 + self asst. tax rs 3000

  9. Surya says:

    How to pay advance tax in below scenarios?
    1. I sold some shares on 10th May of 40000/- and 60000/- on 25th September. So how much advance tax i should pay on 15th September and how much on 15th December.(tax liability is 30%)
    2. In second case I have auto sweep salary account, so by default amounts in my account are moving to auto Fixed deposit and when i withdraw(break the FD) i am getting the interest. So i think for that also i have to pay advance tax if taxable amount is more than 10000/- from Fixed deposit. but i cannot estimate total interest value from Fixed deposit for whole year. so how to pay advance tax on 15th September and 15th December.

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