How and when to calculate and pay the Advance tax and penal provision in case of failure to pay the Advance Tax

1. BY CA POOJA GUPTA
B.com, ACA,ACS
Mobile No: 7838968100
Address: 1X06, First Floor, ILD Trade
Centre, Sohna Road, Gurgaon-122001

2. Meaning of advance tax

3. When the liability to pay the advance tax ariseCondition
Resident Individual age
of 60 Year or more
Income not chargeable
under the head of
PGBP
No need to pay the
Advance tax
Resident Individual age
of 60 Year or more
Other
Other
is 10,000 or
more

4. Amount of advance tax-Section 209
Particular Amount
Tax on the Total Income xxxxxx
Add: Surcharge if applicable and EC+ SHEC@ 3% xxxxxx
Less: Releif u/s 89,90, 90A & 91 xxxxxx
Less: MAT or AMT Credit xxxxxx
Less: TDS and TCS xxxxxx
Amount of Advance Tax xxxxxx

5. Section 201
Payment
of
Advance
Tax
On his own accord
Order or Amended order of
A.O.

6. Payment of Advance Tax: On his own accord
Mandatory liability if liable to pay
Pay on or before each of the due date at
appropriate percentage specified in section
211
Calculate in the manner specified section 209

7. Installments of advance tax-Section 211
Company
Assessee
15% 15 June
45%-Amount
already paid
15 September
75% -
Amount
already paid
15 December
Whole
amount
15 March
Amount paid by way of Advance tax on or before 31st March shall be treated as Advance
Tax.

8. Installments of advance tax-section 211
Non company
Assessee
30% 15 September
60% -
Amount
already paid
15 December
Whole
amount
15 March
Amount paid by way if advance tax on or before 31st March shall be treated as advance tax.

9. Condition of Order or amended order of
assessing officer
Assessee has already been assessed by way of a regular assessment.
A.O. is of the opinion, person is liable to pay the Advance tax.
Order must be in writing.
Notice of demand must specify the amount of advance tax and installment(s) in which
amount to be paid.
Order can be passed upto last date of February.

10. Computation of advance tax by the A.O.
Advance tax on
the income higher
of followings
Total Income returned by the
assessee for any P.Y.
subsequent to the P.Y. for
which regular assessment has
been made
Total income of the latest
P.Y. in respect of which
assessee has been assessed
by way of regular assessment

11. Interest for deferment of advance tax-section
234C
Circumstances in which the interest is
payable u/s 234C
Rate of
Interest
Period Amount on which
interest is to be paid
Advance tax paid on or before 15th September is
less than 30% of tax due on returned income
1% P.M. 3 Months 30% of tax due on
returned income –
advance tax paid upto
15th September
Advance tax paid on or before 15th December is
less than 60% of tax due on returned income
1% P.M. 3 Months 60% of tax due on
returned income –
advance tax paid upto
15th December
Advance tax paid on or before 15th March is less
than 100% of tax due on returned income
1% P.M. 1 Months 100% of tax due on
returned income –
advance tax paid upto
15th March

12. Proviso to section 234C
• Capital gain, income from
lotteries, crossword puzzles
etc.
Casual
Income
• Such income arises after due
date for any installment
• Entire amount of advance tax
on such income shall be paid in
remaining installments.
When the
advance tax
to be paid

13. Section 234B
Interestfornonpayment Condition
Advance tax paid < 90%
of assessed tax
Rate of Interest
1% P.M. or Part of the
Month
Amount
Assessed tax-Advance tax
paid
Period
1st April following the F.Y
upto the date of payment
of tax