1. Is there any compliance if an assessee revises its estimate of income for advance tax?
An assessee can revise the estimation of income and pay the taxes accordingly without any requirement of filing the estimation of income with the department.
2. Can estimate of income be revised for the purpose of advance tax?
In case the assesee wants to revise the estimate of income after making payment of first/ second instalment of advance tax, the assesse can revise the remaining instalment of advance tax in accordance with his revised estimate of current income and pay the advance tax accordingly.
3. What will be the due date for the payment of advance tax if the same is payable by virtue of an order from the Assessing Officer/ Income Tax Officer?
Where advance tax is payable due to the notice of demand issued by Assessing Officer then whole or part of the advance tax is payable in the remaining instalments, i.e., instalments due during the financial year after the date of notice.
4. Who is not required to pay Advance tax?
A resident senior citizen (i.e., an individual of the age of 60 years or above during the financial year) not having any income from business or profession is not liable to pay advance tax.
Taxpayer who opted for presumptive taxation scheme of section 44AD or section 44ADA is liable to pay 100% of advance tax by 15th March.
5. Can I claim the deduction of Advance tax payments against my profits?
Advance Tax is not an expense.
6. What to do if I forgot to bifurcate the amount of tax, surcharge and Cess while making the online payment?
-Showing the total tax liability as Income tax, Education cess, Surcharge, etc., is advisable.
-However, in the event the bifurcation of tax payment like, income-tax, surcharge, Cess, etc., is not done due to any reason, there is no need to panic.
-While filing the income-tax return just mention the total amount. in income-tax column and that would be sufficient. However, at the time of filing income-tax return, you should fill up the correct bifurcation details and then CPC will check it properly at the time of processing.
7. How do advance tax paid get reflected in Form 26AS ?
Once the Advance Tax is paid, it will be reflected on assessee’s Form 26AS within 3-4 working days of making the payment.
8. What should be kept in mind while making payment of tax ?
While making payment of tax, apart from other things, one should clearly mention following details :
9. How to compute advance tax on capital gains income?
Advance tax is payable on total income which includes capital gains and casual income (i.e., income from lotteries, crossword puzzles, etc.).
However, it is practically not possible to estimate the income from capital gain and casual income in advance. Therefore, in such cases it is provided that if any such income arises after the due date of any instalment, then the tax calculated on capital gain and casual income shall be paid in remaining instalments of advance tax which are due.
If the entire amount of tax is so paid then no interest for late payment is levied.
10. In case of advance tax, when is assesse considered as assesse-in-default?
For the purpose of advance tax, an assesse will be considered as assesse-in-default if he:-
1. does not pay the advance tax on receiving the order from Income-tax officer as per the due dates, or
2. does not file an intimation in Form 28A before the instalment due date.
11. What should we do if the bank is closed on the last day for payment of advance tax?
12. Does credit of TDS allowed while calculating advance tax?
As per section 208 of the income-tax Act, 1961, every person whose estimated tax liability for the year is INR 10,000 or more, after TDS (taxes deducted at source), shall pay advance tax.
Therefore, credit of TDS is to be taken while calculating the advance tax liability.
However, if the amount is given or credited by payer without deduction of tax then the benefit of TDS cannot be given while calculating the advance tax liability.
13. Who is responsible to file Form 28A?
In case the Assessing Officer’s estimation of current income is more than the assesse’s estimate then the assessee is required to file an intimation in Form no. 28A giving estimate of income and advance tax.
The estimation is required to be filled and signed by a person who is authorized to sign a return of income.
14. What is Form 28A?
In case the Assessing Officer’s estimation of current income is more than the assesse’s estimate then he is required to send an intimation in Form no. 28A giving estimate of such reduced income and advance tax.
The form is prescribed under Rule 39 of the Income-tax Rules (Form No. 28A).
15. What should I do on receiving the notice from income-tax department for the payment of advance tax, if my actual income is more than what is determined by the tax officer?
Assessing Officer can serve an order requiring the assesse to pay advance tax, if he is of the opinion that such person is liable to pay advance tax.
– However, if you feel that year advance tax liability is lower than the liability calculated by the income-tax officer; you may file an estimation of the income and amount of tax payable thereon
– Such information should be submitted in Form No. 28A to the Assessing Officer
– Alternatively, In case the tax demand calculated by the Income-tax officer is lower than the tax liability computed by you, you should pay the advance tax as per your own computation.
– No intimation to Income-tax officer is required to be made in such cases.
16. Which tax rates are to be used for computing advance tax liability?
Ans: For computing the advance tax liability of the prevailing tax rates or the rates in force of the previous year for which the advance tax is to be computed are to be used.
17. When Assessing Officer is liable to determine the Advance tax liability?
Computation by the Assessing Officer
(a) The total income of the latest previous year in respect of which Officer has assessed income, i.e., the year for which an assessment has been completed by the Income-tax Officer,
(b) The total income declared by the assesse in any return after the year of assessment by officer., i.e., Any income furnished by the assessee in Income-tax return for any previous year after
18. What is the procedure for computing advance tax?
Advance tax is liable to be paid in every case where the advance tax payable is Rs. 10,000 or more. A Resident Senior citizen not having any income from business/profession, is not liable to pay advance tax with effect from A.Y 2013-14 onwards.
An assessee who opts for the presumptive taxation scheme under section 44AD and section 44ADA is required to pay advance tax related to such business. However, advance tax can be paid during the financial year (immediately preceding to the assessment year) on or before March 15.
What is the due date for payment of Advance tax and Self Assessment tax?
(A) LAST DATE FOR PAYMENT OF SELF ASSESSMENT TAX
As per section 140(1) , Payment of income-tax on self-assessment should be done by the assessee before the date of filing of return of income. The payment made after the due date of filing return of income attracts interest under section 234A.
(B) LAST DATE FOR PAYMENT OF ADVANCE TAX
(b) The due dates for payment of different instalments of advance tax are as follows :-
(i) For assessees (other than those covered under section 44ADA of the Income-tax Act, 1961)
|On or before 15th June||15% of advance tax|
|On or before 15th Sept||45% of advance tax|
|On or before 15th Dec||75% of advance tax|
|On or before 15th March||100% of the advance tax|
(ii) For assessees covered under section 44AD and section 44ADA (under presumptive taxation scheme) of the income-tax Act, 1961, are required to pay advance tax on or before 15th Mar
Note: The CBDT vide the Taxation and Other Laws (Relaxation of Certain Provisions) Ordinance, 2020, dated 31-03-2020, has extended all respective due dates, falling during the period from 20-03-2020 to 29-06-2020, till June 30, 2020.
The benefit of extended due date shall not be available in respect of payment of tax. However, any delay in payment of tax which is due for payment from 20-03-2020 to 29-06-2020 shall attract interest at the lower rate of 0.75% for every month or part thereof if same is paid after the due date but on or before 30-06-2020.
20. Who is liable to pay Advance tax?
As per Section 208 of the Income Tax Act,
21. Can payment of advance tax be made through any bank account?