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Pay as you earn – Advance TAX

Ankit Gupta

1.- Section 208

  • An assessee is liable to pay Advance Tax only if his ‘Advance Tax’’ Liability is Rs.10,000 or more during the  previous year.
  • An individual whose age is 60 years or more at anytime during the previous year is not required to pay  Advance Tax if his Total Income does not carry income under the head Profit and Gains from Business and Profession.
  •  While computing Advance Tax Liability, TDS/TCS amount shall not be reduced if the person liable to deduct TDS has failed to deduct or if the person liable to collect TCS has failed to collect it.

2.- Due Date of Payment of Advance Tax

Due Date  % of Advance Tax required to be deposited (CORPORATE ASSESSEE)  % of Advance Tax required to be deposited (OTHER THAN CORPORATE ASSESSEE)
15th June   15%    0%
15th Sept.   45%    30%
15th Dec. 75% 60%
15th Mar. 100% 100%

3.- Section 210

  • An Assessing officer may require assessee to pay Advance Tax by serving notice u/s 210  at an amount and in such manner as may be specified in the notice.
  • No Appeal is possible against order u/s 210
  • No order u/s 210 can be issued after 28th Feb of previous year.
  • No order u/s 210 can be issued where no assessment has been made in respect of any Assessment year.
  • Amount of Advance Tax required to be deposit shall be computed by Assessing officer on the following manner :
    :- Last Assessment made
    :- Return filed by Assessee
    Whichever is higher.
  • An assessee may voluntarily pay Advance Tax at an amount higher than the amount specified in order u/s 210

4. – Computation of Advance Tax Liability

Items Amount
Income under head Salary xxx
Income under head House Property xxx
Income under head Capital Gain xxx
Income under head Other Sources xxx
Income under head P/G/B/P xxx
Gross Total Income xxx
(-)Deductions under chapter VI-A xxx
Total Income xxx
Tax on Total Income xxx
(-) TDS  / TCS xxx
(-) MAT credit xxx
(-) Section 89(1) relief xxx
(-) Relief u/s 90 & 91 xxx
TOTAL ADVANCE TAX LIABILITY  xxx

(Author Can Be Reached At ankit@taxzippy.com   Web- www.taxzippy.com)

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Categories: Income Tax

View Comments (7)

  • Hai,
    If any one earned huge unexpected amount at a time. Then what is the consequences for payment of advance tax.

  • HE IS REQUIRED TO COMPUTE HIS ADVANCE TAX LIABILITY BY CONSIDERING WHOLE OF SUCH INCOME IN THE RESPECTIVE QUARTER ONLY

    SAY IF HE EARN 1 CR IN SEPTEMBER 2014 THEN WHILE COMPUTING HIS ADVANCE TAX LIABILITY FOR JULY-SEPT .. HE SHALL CONSIDER WHOLE 1 CR AS HIS INCOME FOR THE QUARTER

    REGARDS

    http://WWW.TAXZIPPY.COM

  • HI
    Advance tax is to be calculated on the estimated total income of the year as whole.any windfall gain or loss in the last fortnight of the financial year would invariably result in refund or self Assessment Tax.Thereis no other option

  • Hi , My father has passed away in September 2015. It was a Partnership Firm with his uncle(85+years). MY mother is still doing the documentation to do become the PArtner in my Father's Stead to wrap it up within the next year or so.. What should we do regarding the Advance Tax due on 15.12.2015?

    Should we pay a certain amount as usually paid in December. As per the PArtnership Agreement , the same is not dissolved upon my father's death and it can continue to function with the living partner and the legal heirs .
    Kidnly suggest

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