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Self assessment tax & advance tax questions

sharpvision (sharpvision) (43 Points)

28 March 2012

Dear All!

I have sole proprietorship business. My taxable income for assessment year 2012-13 is 7 lac. But, I think I have done a mistake, I did not pay 30% adavance tax & 60% advance tax as was required in September 2011 and December 2011. But, I have paid the tax in full before 15th March 2012.

So, do I have to pay any interest for the 30% & 60% that I did not pay earlier? Please help me to how to calculate it? Also, after calcualting how do I pay the tax... under self-assessment tax? And, how will I have to show this interest when I file the return before 31st July, 2012?

Please help!!!

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5 Replies

Giridhar S Karandikar (Team Lead) (7543 Points)
Replied 28 March 2012

the Fm in his 2011 Budget, has exempted small businessess from paying advance tax & the full tax is requried to be paid at the time of assessing the final liability in the A.Y. However if your business is subjected to Tax Audit, then you shud have paid teh advance tax on the specified dates. The Interst u/s 234b & 234C wud be as follows:

Taxable Income	700000

Tax	40000		(700000-500000)/5

Int u/s 234B	1440		40000.90.01*.4
Int u/s 234C	36	Ist Installment		40000.30.01*3
	36	2st Installment		((40000.30)-12000).01*3

total Interst	1512

From the above liability of Rs. 41512, the advance tax paid on 15th March would be deducted. any TDS would also be deducted. If any balance is remaining then the self-assessemetn tax is to be paid before filing the return. If there is excess tax paid, then a refund can be claimed.

sharpvision (sharpvision) (43 Points)
Replied 28 March 2012

@ Giridhar

Thanks for telling me that Fm in his 2011 Budget, has exempted small businessess from paying advance tax & the full tax is requried to be paid at the time of assessing the final liability in the A.Y.

So, I am assuming that I do not have to pay any interest because no auditing is required.

But, I have another confusion now. You have calculated tax amount on 7,00,000 to be 40,000 only... but on https://law.incometaxindia.gov.in/DIT/Xtras/taxcalc.aspx

I get a total above 70,000 to be paid as tax for the assessment year 2012-13 on an income of 7,00,000.

Giridhar S Karandikar (Team Lead) (7543 Points)
Replied 28 March 2012

Does your income include long-term capital gains. I dont know how u r getting the tax liability of 70k, as for income for above 5lacs, the amount of 5 lacs has to be deducted from the taxable income & tax @ 20% is to be calculated on the balance amount. please check if you have netered your taxable income correctly. I think this shud not have happened.