Advance Tax

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Dharam Prakash Singh

Dharam Prakash Singh (Querist)
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08 March 2010 Please define it where is applicable?

CA.AMAR MOHAPATRA

CA.AMAR MOHAPATRA (Expert)
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08 March 2010 ADVANCE TAX SCHEME
Tax is paid in advance when the liability of advance tax is Rs.5, 000 or more. The
provisions of advance tax are applicable on all types of persons irrespective of the
residential status of the person. The advance tax is paid in the previous year itself.
Thus, the tax is paid in the year of earning of income, in other words the earning
of income and payment of tax goes simultaneously. Thus, the tax is paid as
income is earned. This scheme of advance payment of tax is also called pay as
you earn scheme, i.e., pay tax as you earn income.
DATES OF PAYMENT OF ADVANCE TAX

Advance tax is paid by the all persons, both corporate assessee (company
assessee) and non-corporate assessee (other than non-corporate assessee). The
advance tax is to be paid in the following installments on the following dates:
For Non-Corporate Assessee
Due Dates Amount of Tax payable
On or before 15 September - not less than 30% of tax payable
On or before 15 December - not less than 60% of tax payable
On or before 15 March - not less than 100% of tax payable
For Corporate Assessee
Due Dates Amount of Tax payable
On or before 15 June - not less than15% of tax payable
On or before 15 September - not less than 30% of tax payable
On or before 15 December - not less than 60% of tax payable
On or before 15 March - not less than 100% of tax payable
Since, the actual tax and actual income can be computed only after completion of
the year therefore, the income is estimated at different due dates mentioned above.
The tax on such estimated income is computed and percentage of the tax as
mentioned above is payable by the assessee at different due dates.

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