Advance tax

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amiya (Querist)
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02 August 2010 Dear Sir/Madam
Our company has gain business income in 15 feb of the year. After that we deposited 99.95% of total income on 15 March. We have calculated the 234B which is Zero and 234C also. But my question is should we have to pay 1qr ie 15/06, 2qt 15/09, 3qt 15/12 advance tax even though we donot have income in that period because we could not able to anticipate the income which we earn in 15 feb of same FY.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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02 August 2010 Yes since it is business income you will have to pay interest u/s234C for first 3 quarters.

amiya

amiya (Querist)
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02 August 2010 Dear Sir
Is there any case law which can waive out payment of this tax actually this income which we earned in feb was not anticipated earlier. My question is when i made a projection income in subsequent 3 advance tax payment period how can i anticipate this earning. Please help us

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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02 August 2010 If it is regular business there is no way you can avoid payment of interest u/s 234C.

Only Exception is:

*

Payment of Advance Tax in case of Capital Gains/ casual Income:

In such cases it is not possible for the assessee to estimate his income in advance for payment of advance tax. Therefore it is provided that if any income arises in such cases after the due date of any installment, then advance tax on said income should be paid on / before the due date of next immediate installment or in case of no installment being due by the end of the Previous year, i.e., 31st March.