Advance Tax Provisions Due dates of payment of Advance Tax: In case of Corporate Assessee --------------On or before June 15 of the

previous year On or before September 15 of the previous year On or before December 15 of the previous year On or before March 15 of the previous year 15% of advance tax payable 45% of advance tax payable 75% of advance tax payable 100% of advance tax payable In case of Non-corporate Assessee ------------------------

30% of advance tax payable 60% of advance tax payable 100% of advance tax payable

Any payment of advance tax before March 31, shall also be treated as advance tax paid during the financial year. The Assessing Officer may pass an order requiring an assessee to pay advance tax on his current years income if he has not paid so on his own. Interest will be charged for late filing of return of income u/s 234A @ 1.00% p.m. of the tax due from the due date for filing the return of income applicable to the assessee, till the date of actual payment. Interest will be charged for non-payment of advance tax by March 31 u/s 234B @ 1.00% p.m. of the tax due from April 1 till date for filing the return of income applicable to the assessee, till the date of actual payment.

Provided that no interest shall be payable u/s 234B if 90% or more of the advance tax has been paid on or before March 31. Provided further that no interest u/s 234B is payable if the total tax liability does not exceed Rs.10,000/-(Rs. 5,000/- upto AY 2009-10). Interest will be charged for deferment of advance tax on the due dates mentioned hereinabove, u/s 234C @ 1.00% p.m. of the tax due from the due date on which the respective installment of advance tax was payable till the date of actual payment. Provided that interest shall be payable u/s 234C for three months if the installment is not paid on the respective due dates. Provided that in respect of advance tax, if any paid after March 15 but before March 31 will be charged interest for one month. Provided further that no advance tax is required to be paid by an assessee if the total tax liability does not exceed Rs.10,000/- (Rs. 5,000/- upto A.Y. 2009-10) and hence no interest shall be leviable if the total tax liability is less than Rs. 10,000/-. Provided further that in case of corporate assessees, interest is payable under section 234C is payable if: If -------------------------------------------------On or before June 15 of the previous year On or before September 15 of the previous year On or before December 15 of the previous year Advance tax paid Is Interest to be calculated on -------------------15% of advance tax 30% of advance tax 60% of advance tax payable 100% of advance tax payable

12% of advance tax payable 36% of advance tax payable 75% of advance tax payable 100% of advance tax payable

On or before March 15 of the previous year

In genuine cases, the interest u/s 234A, 234B and 234C can be waived or reduced by the Chief Commissioner/Director General subject to certain conditions.

Problems on Advance Tax

1.

During the financial year 2012-13, installments of Advance Tax. On September 15, 2011 On December 15, 2011 On March 15, 2012 On March 16, 2012

Priya pays the following Rs. 5,800 Rs. 8,000 Rs. 9,000 Rs. 17,000

Priya files her return of income of Rs. 547,700 on July 31, 2012. Assessment is also completed on December 16, 2012 after making addition of Rs.15,000/-. Credit for TDS of Rs. 13,740 was given. Compute interest u/s 234B and 234C. Pravin, submits the following information for the previous year ended March 31, 2012. Business Income Rs. 3,80,000 Long Term Capital Gains Rs. 2,00,000 Winnings from Lottery Rs. 1,00,000 Long Term Capital Gains earned on sale of Debentures on September 20, 2011 Lottery won on December 20, 2011 Ascertain the liability of Advance tax payable by Pravin during the year. Yogesh submits the information in respect of A.Y. 2012-13. as follows a) Date of Filing Return of Income January 10, 2013 b) Income declared Rs. 555,000 Due date for filing return 31/07/12 c) Income Assessed on April 20, 2013 Rs. 575,000 d) Advance Tax paid Rs. 10,000 e) TDS Rs. 5,000 f) Self Assesment paid Rs. 28,500 Compute interest liability u/s 234A and 234B

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