2. INTRODUCTION
Advance Tax is pre paid tax by the assesses on the income earned
during the year. In simple words, assesses have to pay taxes in
advance on the estimate income during the year in three installment
for individual assesses and four installments for companies and
corporate assesses.
Advance Payment of Tax is also called as Pay as you earn income
WHEN TO PAY: Advance tax is payable if the total tax liability after
reducing the TDS is Rs. 10,000/- or more.
Senior citizen who do not have any income from business are
exempted from the payment of advance tax w.e.f 01/04/2012
3. Advance Tax Installments & Due Dates for
Corporate Assessees & Non Corporate
Assessees
Due Date Tax Amount Liable to Pay
15th June At least 15% of Tax on total income for the year.
15th September At least 45% of Tax on total income for the yea
15th December At least 75% of Tax on total income for the year less
advance tax already paid
15th March 100% of Tax on total income for the year less advance
tax already paid
4. Advance Tax Installments & Due Dates for
Corporate Assessees & Non Corporate
Assessees
Due Date Tax Amount Liable to Pay
15th June At least 30% of Tax on total income for the year.
15th
September
At least 60% of Tax on total income for the year less
advance tax already paid
15th
December
100% of Tax on total income for the year less advance tax
already paid
6. Payable By Assesse Receivable by
Assessee
Section 234A
Section 234B
Section 234C
Section 234D
Section 220(2)
Section 244A
7. INTEREST U/S 234A:
For Delay or Failure in Furnishing The Return
Simpal interest @1% fore every month & part
thereof from due date of filing of return to the date
of furnishing of return
Period of Interest Payable
In case of Companies or Assesse covered under Tax
Audit From 1st October of the Assessment year to the
Date of Furnishing the return of Income
In case of any other Assesse From 1st August of the
Assessment year to the Date of Furnishing the return of
Income
8. INTEREST U/S 234B
If you do not pay advance tax at all or if the
aggregate paid on 31st March is less than
90% of the total tax payable, you will have to
pay an interest of 1% per month on the
deficit amount from 1st April of the following
year till the date you file your return
9. INTEREST U/S 234C
In case of Corporate Assesses
Interest is Payable Interest Rate Period
If Advance Tax is paid on or
before
September 15 is Less than
30%
If Advance Tax is paid on or
before
December 15 is Less than
60%
If Advance Tax is paid on or
before
March 15 is Less than 100%
1% for every month or Part
of Month
1% for every month or Part
of Month
1% for every month or Part
of Month
3 Months
3 Months
1 Month
10. INTEREST U/S 234C
In case of a Non Corporate
Assesses
Interest is Payable Interest Rate Period
If Advance Tax is paid on or before
June 15 is Less than 15%
If Advance Tax is paid on or before
September 15 is Less than 45%
If Advance Tax is paid on or before
December 15 is Less than 75%
If Advance Tax is paid on or before
March 15 is Less than 100%
1% for every month or Part of
Month
1% for every month or Part of
Month
1% for every month or Part of
Month
1% for every month or Part of
Month
3 Months
3 Months
3 Months
1 Month
11. INTEREST U/S 234D:
When any refund is granted to the assessee u/s
143(1) and on regular assessment it is found that
either no refund is due or the amount already
refunded exceeds the refund determined on
regular assessment. The interest is levied @ 0.5%
on the whole or excess amount so refunded for
every month or part thereof from the date of grant
of refund to the date of such regular assessment.
12. INTEREST U/S 220(2)
If the assesse fails to pay any tax within 30 Days from the
date of receipt of the notice of Demand issued u/s 156, shall
liable to pay interest,
Interest at 1% for every Month, a part of Month is also
consider as a Month,
Period is from Expiry of 30 Days of the service of the
demand notice
13. Under this section Interest is receivable by assessee
If the amount of advance tax you paid was more than 10% of
the applicable advance tax amount, they will pay you 0.5%
interest per month.
INTEREST U/S 244A:
14. General information: To pay advance tax online log on to
www.tin-nsdl.com, click “Pay taxes online”. Select challan
no.ITNS 280 and proceed.
