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Advance tax (company) calculator for ay 2012-13

varsha (ghhg) (92 Points)

09 December 2011

Hi all

Please give me advance tax calculator for company.

Best regards

Varsha

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2 Replies

Rajendra Kumar Panigrahi (Accounts Executive) (29 Points)
Replied 11 April 2012

Who to calculate Advance Tax.Is it mandatory to pay advance tax .I f Advance tax is not paid in time.What is the libilities arise.

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Murtaza I Bhagat (Tax & Finance Consultant) (10523 Points)
Replied 16 April 2012

ADVANCE INCOME TAX

Obligation to pay Advance Tax - sec. 210

Apart from making provisions for deduction of tax at source on various income based upon quantum of income, the Indian Income-tax Act makes it compulsory for every person liable to pay tax in India, to pay Income-tax in advance on the income of the current financial year. However no such advance tax is payable unless the tax payable is Rs. 5000/- or more after deducting the tax deducted at source from the gross tax payable on the current income.

PAYMENT OF ADVNCE TAX ON THE ESTIMATED TAXABLE INCOME BY ALL ASSESSEE

(Other than companies)

Installment

Percentage

Due Date

First

Second

Final

30%

40%

15th September

15th December

15th March

Eg.: If an Assessee’s estimated tax payable for the full year is Rs.10,000 , he has to pay an Advance Tax of Rs.3,000 each in 1st & 2nd Installment & Rs. 4,000 in Final Installment.

No Advance Tax need to be paid, if total tax payable for the year is less than Rs. 5,000.
When employer deducts tax from Salary, employee need not pay Advance Tax.

Non-payment or short payment of Advance Tax will attract penal interest.

Advance Tax Example :

Mr. Sanjay estimates his income for the year 2007-2008 as on

1.9.2006.

Details :

Business Income 2,50,000
Interest from Bank & NSC 15,000
PPF Contribution 4,000
Life Insurance Premium 6,000
ELSS 10,000
TDS on Interest 1,100

Solutions :

Taxable Income : (1&2) Rs. 2,50,000 + 15,000 = 2,65,000

(3 to 5) Rs. 4000, 6000, 10000 = (-) 20,000

= 2,45,000

Tax on 2,45,000 including EDU Cess @ 2% 24,480

Less : TDS on Interest 1,100

Total Tax Payable 23,280

Installment of Advance Tax Payable

1 st. - 30% on 23,380 payable on 15/09/06 7,014

2 nd. - 30% on 23,380 payable on 15/12/06 7,014

3 rd. - 40% on 23,380 payable on 15/03/07 9,352

Interest for short or non-payment of Advance Tax - sec.234B

(b) If no advance tax is paid at all or if the aggregate of the tax paid by 31st March of the current financial year is less than ninety percent of tax determined as payable by the tax payer on completion of the assessment then interest @ 2% p.m. and at 1½% from 1-6-1999 is charged on the deficit amount from 1st April of the following year upto the date of the assessment.

In the example given under (a) above, if the net tax payable on assessment is increased to Rs. 11000/- then interest will be payable under (b) above since the total tax paid is Rs. 9500/- which is less than 90% of Rs. 11000/- which will be Rs.9900/-.Interest payable will be 2% p.m.on Rs. 1500/- (Rs.11000-9500) and it will be payable from 1-4-1996 till the date of completion of the assessment.

[In addition to interest payable as refered to above, for deferment of advance tax and for non or short payment of advance tax, interest is also payable for non-filing or delayed filing of return of income. (Sec. 234A) ]