Applicability of 234b and 234c

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Querist : Anonymous

Querist : Anonymous (Querist)

29 July 2016 Sir,
Please give details for 44AD case advance tax applicability and 234B and 234C.
Kindly reply soon

CA SAGAR M. AHUJA

CA SAGAR M. AHUJA (Expert)
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29 July 2016 An Assessee who has opted for the scheme of computing business income under section 44AD on presumptive basis at the rate of 8 per cent of t.over, is exempted from payment of advance tax related to such business for the A.Y 2011-12 to 2016-17.
Advance Tax provisions has been amended by the Finance Act 2016 (No. 28 of 2016) which is effective from 01-06-2016 for Assessment Year 2017-18. Major amendments related to Advance Tax Liability for A. Y. 2017-18 are as follows:

(a) Section 211(1) is amended to provide that advance tax will be paid in four installments of 15%, 45%, 75% and 100% of tax payable on the current income by 15th June, 15th September, 15th December and 15th March, respectively in case of all assesses. Earlier upto AY 2016-17 the assessee other than corporate assessee paid Advance Tax in three Installment. Now all assessee except assessee covered u/s 44AD is treated at par for Advance Tax provisions.

(b) Assessees covered u/s 44AD are to pay advance tax of the whole amount in one instalment on or before the 15th March of the financial year consequent upon raising of the turnover limit from Rs.1 crore to Rs. 2 crore.

Based on above amendments the advance tax related provision under income tax law is as under:

Advance tax (Section 208, 209 & 211)

Advance tax is payable on all income during the financial year in every case where the amount of such tax payable by an assessee during that year is Rs. 10,000 or more.