Advance Tax

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Vinod

Vinod (Querist)
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15 September 2009 What is Advance Tax

How Can we calculate advance tax

pls advise with example

Rajesh

Rajesh (Expert)
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15 September 2009 Dear Vinod

if any person tax liability is more than Rs. 5000/- than he has to deposit the advance tax

It is calculated on the estimated tax liability for the f.y.

Rajesh

Rajesh (Expert)
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15 September 2009 (1) Advance tax on the current income calculated in the manner laid down in section 209 shall be payable by-

(a) all the companies, who are liable to pay the same, in four instalments during each financial year and the due date of each instalment and the amount of such instalment shall be as specified in Table I below:

On or before the 15th June --- Not less than fifteen per cent. of such advance tax.

On or before the 15th September--- Not less than forty-five per cent. of such advance tax, as reduced by the amount, if any, paid in the earlier instalment.

On or before the 15th December --- Not less than seventy-five per cent. of such advance tax, as reduced by the amount or amounts, if any, paid in the earlier instalment or instalments.

On or before the 15th March --- The whole amount of such advance tax as reduced by the amount or amounts, if any, paid in the earlier instalment or instalments.

(b) all the assessees (other than companies), who are liable to pay the same, in three instalments during each financial year and the due date of each instalment and the amount of such instalment shall be as specified in Table II below:

Due date of instalment Amount payable

On or before the 15th September Not less than thirty per cent. of such advance tax.

On or before the 15th December Not less than sixty per cent. of such advance tax, as reduced by the amount, if any, paid in the earlier instalment.

On or before the 15th March The whole amount of such advance tax as reduced by the amount or amounts, if any, paid in the earlier instalment or instalments:

Provided that any amount paid by way of advance tax on or before the 31st day of March shall also be treated as advance tax paid during the financial year ending on that day for all the purposes of this Act.

(2) If the notice of demand issued under section 156 in pursuance of an order of the Assessing Officer under sub-section (3) or sub-section (4) of section 210 is served after any of the due dates specified in sub-section (1), the appropriate part or, as the case may be, the whole of the amount of the advance tax specified in such notice shall be payable on or before each of such of those dates as fall after the date of service of the notice of demand.