Advance tax provisions

This query is : Resolved

Himanshu Gandotra (Querist)
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28 December 2016 Sir i wanted to ask If someone has filed Itr 4 in AY-2012-13 with following incomes:- 44ad Income from house property capital gain other sources Tds is also deducted on fdr interest Whether he is liable to pay advance tax? Please explain with provisions...

Himanshu Gandotra

Himanshu Gandotra (Querist)
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28 December 2016 also explain if his age is above or below 60 at that time

Asha Kanta Sharma

Asha Kanta Sharma

(Expert)
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14 July 2024 Based on the information provided and assuming the taxpayer has filed ITR-4 for Assessment Year (AY) 2012-13 with income under various heads and TDS deducted on FDR interest, let's analyze the requirement for advance tax payment and considerations based on the taxpayer's age:

### Liability to Pay Advance Tax:

#### Income Heads and Advance Tax Liability:

1. **Income from Business under Section 44AD**:
- Income computed under Section 44AD is presumed to be 8% of the turnover or gross receipts of the eligible business. This is a presumptive taxation scheme.
- If the taxpayer opted for Section 44AD, they are required to pay advance tax if the total tax liability (after TDS and other credits) exceeds Rs. 10,000 in a financial year.

2. **Income from House Property, Capital Gains, and Other Sources**:
- For income from house property, capital gains, and other sources, advance tax is payable if the total tax liability (after TDS and other credits) exceeds Rs. 10,000 in a financial year.
- TDS deducted on FDR interest will be credited against the tax liability, but the taxpayer may still need to pay advance tax if the overall tax liability exceeds Rs. 10,000.

#### Age Consideration:

- **Below 60 years**: If the taxpayer was below 60 years of age during AY 2012-13, advance tax is applicable if the tax liability exceeds Rs. 10,000 after considering TDS and other credits.

- **60 years or above (Senior Citizen)**: If the taxpayer was 60 years or above (senior citizen) during AY 2012-13, advance tax is applicable if the tax liability exceeds Rs. 10,000 after considering TDS and other credits.

### Provisions:

1. **Advance Tax Provisions**:
- Advance tax must be paid in installments during the financial year as per specified due dates (15th June, 15th September, 15th December, and 15th March).
- The taxpayer needs to estimate their income and compute their tax liability for the year. If the estimated tax liability exceeds Rs. 10,000, advance tax must be paid.

2. **Impact of TDS**:
- TDS deducted on income like FDR interest will be credited to the taxpayer's account.
- However, the taxpayer must ensure that the total tax liability, after considering TDS, does not exceed Rs. 10,000 to determine if advance tax is payable.

### Conclusion:

Based on the income heads reported (business income under Section 44AD, income from house property, capital gains, and other sources), and considering TDS on FDR interest, the taxpayer is likely required to pay advance tax if their total tax liability exceeds Rs. 10,000 after accounting for TDS and other credits. Age considerations (below 60 or 60 years and above) do not affect the applicability of advance tax; it depends solely on the tax liability computation.

It's advisable for the taxpayer to consult with a tax advisor or chartered accountant to accurately compute their tax liability and ensure compliance with advance tax payment requirements for AY 2012-13.

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