advance tax for a business in its first year of operation

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

20 January 2011 hello,
i have started a bakery business on 23 sept,2010.can one explain me if im liable for advance tax in the very first year as i have no projections of my profitability.

can the it dept. penalize me for nonpayment of taxes in the first year.

Sunil Kr. Sanganeria

Sunil Kr. Sanganeria (Expert)
Follow

20 January 2011 A person is liable to pay advance tax even in first year of operation. If you are liable to pay advance tax but you did not paid you have to pay interest u/s 234B & C of the I.T.Act

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
Follow

20 January 2011 Liable to pay advance tax if the tax payable on the estimated total income is 10,000/- or more. If not paid , interest liability arises under section 234B and 234C of the Income tax Act,1961. Further, the assessee shall be treated as an "assessee in default" and penalty proceedings under section 221(1) can be initiated by the assessing officer.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now