Conditions of liability to pay advance tax is that it shall be payable during a financial year in every case where the amount of such tax payable by the assessee during that year, as computed, is ten thousand rupees or more.
It is computed in every quarter and tax is paid in following manner:
Advance tax is paid by corporate assessee (company assessee) and non-corporate assessee (other than non-corporate assessee).
The advance tax is to be paid in installments on the following due dates:
For Non-Corporate Assessee On or before 15 September - not less than 30% of tax payable
On or before 15 December - not less than 60% of tax payable
On or before 15 March - not less than 100% of tax payable
For Corporate Assessee
On or before 15 June - not less than15% of tax payable
On or before 15 September - not less than 45% of tax payable
On or before 15 December - not less than 75% of tax payable
On or before 15 March - not less than 100% of tax payable
However, it is to be noted that the actual tax and actual income can be computed only after completion of the financial year hence, the income is an estimated one at each due dates specified above.
To illustrate:
The income of Mr.A is Rs. 3,20,000.(fy 2012-13). The tax is Rs.12,000/- on income of Rs.3,10,000.
Since, tax is more than Rs. 10,000, therefore, section 208 - advance tax is payable. The advance tax is payable as under:
1st Installment (non-corporate assessee)will be due on 15th September. 30% of Rs.12,000 = Rs.4,000/-
Similarly balance installments are paid.
Self Assessment Tax:
It has to be paid before filing of income tax return. This is the tax on income which payable to government after following adjustments:
Income Tax payable Less: Tax deducted at source Less: Advance Tax Less: Interest u/s 234B & 234C
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