Delay in depositing advance tax

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

26 March 2013 1.If one misses the last date [March 15]to deposit advance tax; does it make sense to deposit the same before 31 march 2013 ?.

2. By depositing before 31 march 2013, will it not reduce the interest burden under sectio 234 by atleast one month [if compared to depositing self assesment tax after 1 april 2013] ?

3. If it makes sense to deposit the tax after 15 march 2013 but before 31 march 2013, should it be deposited as an advance tax or as self assesment tax ?

Dintakurthi Tirumala

Dintakurthi Tirumala (Expert)
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26 March 2013 If you deposited it on or before 31-3-2013 then interest u/s 234B will not apply and interest u/s 234C @1% however has to be pay because of not paid with in 15-3-2013 on the not paid amount.

In case if you deposited it on 1-4-2013 then interest u/s 234B @1% may applicable(i.e if total advance tax paid as on 31-3-2013 is lower of 90% of total tax liability then section 234B interest attracts)

All the tax payment which is paying in the current financial year for which are related to current financial year shall be called as advace tax. So if the tax payment made on or before 31-3-2013 it is called as advance tax.

However you have to pay 1% interest u/s 234C for the non payment amount of advance tax on or before 15-3-2013. So if you paid such amount on or before 31-3-2013 you can aviod interest u/s 234B.

If you understanded the case. Otherwise please reply with the details of your total tax liability for A.Y 2013-14 and advance tax paid details.

OM SAI SRI SAI JAI JAI SAI

Querist : Anonymous

Querist : Anonymous (Querist)

26 March 2013 Thanks. It is fully understood.

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