Advance Tax date for all : pay 15% by 15th june – Ist installment

By | June 4, 2016
(Last Updated On: May 21, 2018)

Advance Tax

Advance Tax

Analysis of Changes relating to  Advance Tax Due Dates made by Finance Act 2016

  1. Now Whether Corporate or non Corporate Assessee (Except Assessee to whom section 44AD applies as per point 2 below ) are required to pay tax in 4 Installments . on or before 15th June ,15th September,15th December ,15th March
  2. Assessee to whom Section 44AD applies are also required to pay Advance Tax on or before 15th March .In case of Default , interest for default and deferment of advance tax under Section 234B and Section 234C respectively, shall also be levied.

Section – 89, Finance Acts – 2016 has amended Section 211 of Income Tax Act relating to Advance Tax Due Dates

In section 211 of the Income-tax Act, for sub-section (1), the following sub-section shall be substituted with effect from the 1st day of June, 2016, namely:—

(1) Advance tax on the current income calculated in the manner laid down in section 209 shall be payable by—

a) all the assessees, other than the assessee referred to in clause (b), who are liable to pay the same, in four instalments during each financial year and the due date of each instalment and the amount of such instalment shall be as specified in the Table below

TABLE

Due date of instalment                                       Amount payable

On or before the 15th June                               Not less than fifteen per cent of such advance tax.

On or before the 15th September                    Not less than forty-five per cent of such advance tax, as                                                                                   reduced by the amount, if any, paid in the earlier                                                                                               instalment.

On or before the 15th December                     Not less than seventy-five per cent of such advance tax,                                                                                  as reduced by the amount or amounts, if any, paid in the                                                                                earlier instalment or instalments

On or before the 15th March                          The whole amount of such advance tax, as reduced by the                                                                              amount or amounts, if any, paid in the earlier instalment                                                                                or instalments;

b) b) 2[an assessee who declares profits and gains in accordance with the provisions of sub-section (1) of section 44AD or sub-section (1) of section 44ADA, as the case may be], to the extent of the whole amount of such advance tax during each financial year on or before the 15th March [ Comment : Professionals allowed to pay advance tax in single installment w.e.f AY 2017-18 u/s 44ADA ]

Provided that any amount paid by way of advance tax on or before the 31st day of March shall also be treated as advance tax paid during the financial year ending on that day for all the purposes of this Act.”.


Note 2. Substituted for “an eligible assessee in respect of an eligible business referred to in section 44AD” by the Finance Act, 2017, w.e.f. 1-4-2017.


Interest for defaults in payment of advance tax.

As per Section 234B. (1) Subject to the other provisions of this section, where, in any financial year, an assessee who is liable to pay advance tax under section 208 has failed to pay such tax or, where the advance tax paid by such assessee under the provisions of section 210 is less than ninety per cent of the assessed tax, the assessee shallbe liable to pay simple interest at the rate of one per cent for every month or part of a month comprised in the period from the 1st day of April next following such financial year to the date of determination of total income under sub-section (1) of section 14 and where a regular assessment is made, to the date of such regular assessment, on an amount equal to the assessed tax or, as the case may be, on the amount by which the advance tax paid as aforesaid falls short of the assessed tax.

Interest for deferment of advance tax.

As per Section 234C

  • Where in any financial year,—

 (a)         an assessee, other than an eligible assessee in respect of the eligible business referred to in section 44AD, who is liable to pay advance tax under section 208 has failed to pay such tax or—

(i)           the advance tax paid by such assessee on its current income on or before the 15th day of June is less than fifteen per cent of the tax due on the returned income or the amount of such advance tax paid on or before the 15th day of September is less than forty-five per cent of the tax due on the returned income or the amount of such advance tax paid on or before the 15th day of December is less than seventy-five per cent of the tax due on the returned income, then, the assessee shall  be liable to pay simple interest at the rate of one per cent per month for a period of three months on the amount of the shortfall from fifteen per cent or forty-five per cent or seventy-five per cent, as the case may be, of the tax due on the returned income;

(ii)          the advance tax paid by the assessee on the current income on or before the 15th day of March is less than the tax due on the returned income, then, the assessee shall be liable to pay simple interest at the rate of one per cent on the amount of the shortfall from the tax due on the returned income:

               Provided that if the advance tax paid by the assessee on the current income, on or before the 15th day of June or the 15th day of September, is not less than twelve per cent or, as the case may be, thirty-six per cent of the tax due on the returned income, then, the assessee shall not be liable to pay any interest on the amount of the shortfall on those dates;

 (b)    an eligible assessee in respect of the eligible business referred to in section 44AD, who is liable to pay advance tax under section 208 has failed to pay such tax or the advance tax paid by the assessee on its current income on or before the 15th day of March is less than the tax due on the returned income, then, the assessee shall be liable to pay simple interest at the rate of one per cent on the amount of the shortfall from the tax due on the returned income:

Provided that nothing contained in this sub-section shall apply to any shortfall in the payment of the tax due on the returned income where such shortfall is on account of under-estimate or failure to estimate—

(a)           the amount of capital gains; or

(b)           income of the nature referred to in sub-clause (ix) of clause (24) of section 2; or

(c)    income under the head “Profits and gains of business or profession” in cases where the income accrues or arises under the said head for the first time,

and the assessee has paid the whole of the amount of tax payable in respect of income referred to in clause (a) or clause (bor clause (c, as the case may be, had such income been a part of the total income, as part of the remaining instalments of advance tax which are due or where no such instalments are due, by the 31st day of March of the financial year:

 

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