Payment of Advance Tax

  1.   Liability for payment of advance tax.

Under section 208, obligation to pay advance tax arises in every case where the advance tax payable is Rs. 10,000 or more  2.      Installments of advance tax and due dates. Advance tax shall be payable by companies and other assessees as per the following schedule of installments; A.    FOR COMPANIES:

Due date of installmentAmount payable
On or before the 15th June of previous yearNot less than 15% of advance tax liability.
On or before the 15th September of previous yearNot less than 45% of advance tax liability, as reduced by the amount, if any, paid in the earlier installment.
On or before the 15th December of previous yearNot less than 75% of advance tax liability,as reduced by the amount, if any, paid in the earlier installment or installment.
On or before the 15th March of previous yearThe whole amount of advance tax liability as reduced by the amount or amounts, if any, paid in the earlier installment or installments.


B.     FOR ASSESSEES – OTHER THAN COMPANIES:

Due date of installmentAmount payable
On or before the 15th September of previous yearNot less than 30% of advance tax liability.
On or before the 15th December of previous yearNot less than 60% of advance tax liability, as reduced by the amounts, if any, paid in the earlier installment or installments.
On or before the 15th March of previous yearThe whole amount of advance tax liability as reduced by the amount or amounts, if any, paid in the earlier installment or installments.

3.      Time Limit. The last date of payment of the whole amount of advance tax is 15th March of the relevant financial year. However, any amount paid by way of advance tax on or before 31st March is also considered as advance tax paid for the financial year. Interest liability for late payment will arise in such a case. 4.      Penal Interest.

  • If the last day for payment of any installment of advance tax is a day on which the receiving bank is closed, the assessee can make the payment on the next immediately following working day, and in such cases, the mandatory interest leviable under sections 234B and 234C would not to be charged.
  • Where advance tax is payable by virtue of the notice of demand issued under section 156 by Assessing Officer, the whole or the appropriate part of the advance tax specified in such notice shall be payable on or before each or such due dates as fall after the date of service of demand.
  • Where the assessee does not pay any installment by the due date, he shall be deemed to be an assessee in default in respect of such installment.

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