Diff in advance tax & income tax
This query is : Resolved
30 October 2010
R/Sir,
Please tell me the diff. & similarities between advance tax & income tax.Why we deposit the advance tax & what is the advantages of advance tax.please tell me in detail.
Please provide me some notes if possible .
Regards,
Naveen Kumar
Please tell me the diff. & similarities between advance tax & income tax.Why we deposit the advance tax & what is the advantages of advance tax.please tell me in detail.
Please provide me some notes if possible .
Regards,
Naveen Kumar
Guest
Guest
(Expert)
30 October 2010
CHAPTER – XVII C - ADVANCE TAX
[1.] Section 207: Tax shall be required to be paid during the Financial Year on the estimated income of the Financial Year, which will be taxable during the Assessment Year.
[2.] Section 208: Who shall be required to pay tax in advance? :
The liability to pay tax in advance arises only if the amount of such final tax payable (including Surcharge and Education Cess) is Rs. 10,000/- or more for the whole Financial Year. (Otherwise, in a case where the final tax payable for the year is less than Rs. 10,000/-, then assessee can pay Self-Assessment Tax.)
[3.] Section 209: Calculation of the amount of Advance Tax:
The amount of final tax payable can be found out in the following manner.
a) Estimate the Net Total Income for the current year.
b) Estimate the total tax liability on such current year income.
c) From such tax calculated as above reduce the followings:-
i) DTAA Relief U/S 90/90A/91
ii) Any other Rebate or Relief
iii) MAT credit U/S 115JAA
iv) Tax deductible at source
v) Tax collectible at source
d) Include Surcharge and Education Cess at the rate applicable to the assessee.
[4.] Section 211: Due dates for payment of Advance Tax Installment:-
% of Installment
DUE DATE FOR CORPORATE ASSESSEE FOR NON-CORPORATE ASSESSEE
15th June of the P.Y. 15 % NIL
15th September of the P.Y. 45 % 30 %
15th December of the P.Y. 75 % 60 %
15th March of the P.Y. 100 % 100 %
[5.] Section 218: Failure to pay advance tax inst. will render the assessee to be deemed to be an assessee in default.
[1.] Section 207: Tax shall be required to be paid during the Financial Year on the estimated income of the Financial Year, which will be taxable during the Assessment Year.
[2.] Section 208: Who shall be required to pay tax in advance? :
The liability to pay tax in advance arises only if the amount of such final tax payable (including Surcharge and Education Cess) is Rs. 10,000/- or more for the whole Financial Year. (Otherwise, in a case where the final tax payable for the year is less than Rs. 10,000/-, then assessee can pay Self-Assessment Tax.)
[3.] Section 209: Calculation of the amount of Advance Tax:
The amount of final tax payable can be found out in the following manner.
a) Estimate the Net Total Income for the current year.
b) Estimate the total tax liability on such current year income.
c) From such tax calculated as above reduce the followings:-
i) DTAA Relief U/S 90/90A/91
ii) Any other Rebate or Relief
iii) MAT credit U/S 115JAA
iv) Tax deductible at source
v) Tax collectible at source
d) Include Surcharge and Education Cess at the rate applicable to the assessee.
[4.] Section 211: Due dates for payment of Advance Tax Installment:-
% of Installment
DUE DATE FOR CORPORATE ASSESSEE FOR NON-CORPORATE ASSESSEE
15th June of the P.Y. 15 % NIL
15th September of the P.Y. 45 % 30 %
15th December of the P.Y. 75 % 60 %
15th March of the P.Y. 100 % 100 %
[5.] Section 218: Failure to pay advance tax inst. will render the assessee to be deemed to be an assessee in default.
30 October 2010
THANKS FOR THE REPLY..BUT I WANT TO KNOW IF WE ARE UNABLE TO DEPOSIT THE ADVANCE TAX ON DATE, WE ARE LIABLE TO PAY INTEREST @1% OR ANY OTHER RATE OF INTEREST..PLEASE TELL ME ASAP.
REGARDS,
NAVEEN KUMAR
REGARDS,
NAVEEN KUMAR
30 October 2010
You are liable to pay interest under Section 234B and C
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- GSTR-1A How to update Invoice
- Excess salary payment.
- TDS on Purchase of Immovable Property by NRI from NRI
- INTEREST APPLICABLE ON ITC REVERSAL PORTION
- Current Account Opening for Sole Proprietorship with Udyam Certificate - Zero Turnover
- Capital gain from sale of house property
- Stamp Paper for partnership firm change new income tax 2025
- SFT Cash Deposit in Current Account
- Value of property in capital gain
- When TDS on GST applied
- TDS APPLICABILITY......
- Copyright software
- Cash gift by grand mother to her grand daughter
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
- Restoration of certificate of practice
- Regarding change in correspondence address in SSP portal
- No Compliences after incorporation
- USEFUL LIFE OF USED/SECOND HAND COMMERCIAL VEHICLES
- Claiming TDS deducted by builder on Hardship compensation and Corpus
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
