Advance Tax
MOHD SHOEB (1 Points)
16 January 2021
Please explain me how to do advance tax calculation
3 Replies
CA. Sourav Sarkar
(Chartered Accountant )
(24588 Points)
Replied 16 January 2021
Advance tax should be 90% of assessed tax
Krishna Chaudhary
(Accountant)
(4531 Points)
Replied 16 January 2021
Under Income Tax Act, 1961 certain type of Assessee are required to Pay Advance Tax in 4 Instalments. Short or Non Payment of Advance Tax tax results in levy of Interest Under Section 234A, Section 234B and Section 234C of Income Tax Act, 1961. Advance Tax Instalment falls every Year on 15th June, 15th September, 15th December and 15th March and Assessee needs to pay 15%, 45%, 75% and 100% of the Advance Tax payable.
Advance Income Tax Provisions explaining Taxpayers liable to pay Advance Tax, Mode of Advance Tax Payment and Schedule for payment of Advance Tax is as follows:-
Taxpayers liable to pay Advance Tax
Mode of PaymentSchedule for payment of Advance Tax
Any assessee, including salaried employee, whose tax liability for the financial year as reduced by the tax deducted/collected at source is Rs. 10,000/- or more.
Resident Senior Citizen ( individual who is of the age of 60 years or more) not having income from business/ profession, is not liable to pay.
Assessee in respect of eligible business referred to in Section 44AD is liable to pay whole amount of such Advance Tax on or before 15th March of respective Financial Year.
♠ e-payment is mandatory for all Corporates and also those assessees whose accounts are required to be audited u/s 44 AB of the Income tax Act.
♠ e-payment is convenient for other taxpayers also as it ensures correct credit.
Advance Income Tax Provisions explaining Taxpayers liable to pay Advance Tax, Mode of Advance Tax Payment and Schedule for payment of Advance Tax is as follows:-
Taxpayers liable to pay Advance Tax
Mode of PaymentSchedule for payment of Advance Tax
Any assessee, including salaried employee, whose tax liability for the financial year as reduced by the tax deducted/collected at source is Rs. 10,000/- or more.
Resident Senior Citizen ( individual who is of the age of 60 years or more) not having income from business/ profession, is not liable to pay.
Assessee in respect of eligible business referred to in Section 44AD is liable to pay whole amount of such Advance Tax on or before 15th March of respective Financial Year.
♠ e-payment is mandatory for all Corporates and also those assessees whose accounts are required to be audited u/s 44 AB of the Income tax Act.
♠ e-payment is convenient for other taxpayers also as it ensures correct credit.
CA Rashmi Gandhi
(Chartered Accountant)
(86469 Points)
Replied 18 January 2021
You have to firstly calculate your estimated income. Then estimated tax as per slab rate.
Then calculate Advance tax with respective % for respective quarter
Then calculate Advance tax with respective % for respective quarter
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