Advance Tax
Advance Tax
Advance Tax
The concept is based on income tax is being paid in advance to the department (before assessment year
starts) and claiming the benefit of lesser tax burden at the time of actual payment.
Normal mechanism:
1st Quarter – 15th June For all the quarter: 15th March
2nd Quarter – 15th September Note: Obligation to pay Advance Tax is imposed only to
the assessee who is liable to pay advance tax of Rs 10,000
3rd Quarter – 15th December
or more
4th Quarter – 15th March Advance tax is not payable by:
Estimated Total Income: XXX If atleast 90% of advance tax is not paid by assessee
before 31st March;
Tax + cess on estimated income: XXX Interest of 1% shall be imposed on such short/ non
payment of advance tax.
Less: TDS XXX
Interest u/s 234C:
Advance Tax payable: XXX
If the assessee liable to pay Advance tax does not
pay with the prescribed due dates;
Interest of 1% is imposed on short payment or non
payment of advance tax.
A.O can pass an order u/s 210 against the assessee to pay advance tax
In such case assessee can accept the demand and pay Adv tax; OR
He can also pay lesser amount by declaring income on estimated basis under form 28A.
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