Advance tax

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This query is : Resolved

sunil (Querist)

27 November 2013 Dear Sir,

My query is If we are not paid 3rd Q tr advance tax till 15 December and we want to pay in January so how much interest will be paid with advance tax.

For Example : 75% of Advance tax till December is Rs.8Lac and we are paying in Jan than amount is eight Lac Eight Thousand included 1 % interest. This is right or wrong.

Manish Bhandari

Manish Bhandari (Expert)

27 November 2013 if you miss any quarter then do not pay till next quarter in between. I would suggest you pay in March the amount for December & march together. You will not save any interest if you pay in January.

sunil

sunil (Querist)

27 November 2013 Thanks Sir for the suggestion but can we pay in January and what is the interest amount.

Manish Bhandari

Manish Bhandari (Expert)

28 November 2013 LOGICALLY there is no exact income currently to calculate the tax & interest part. You have to pay advance for an estimated income which attracts that tax. How can to pay interest on an tax which is currently presumtive. I dont think there is any such provision. But still if you want you can for example if you are paying 100,000 as advance tax pay 110000 instead in january. But anyways the interest burden for 234B & C will be calculated upto 15 march till the next instalment is due. So you will blocking your liquid fund without any saving in interest.

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