Get Answers to 3 GST Queries FREE with Expert CA guidance from CAclubindia Pro. Subscribe Now!

Advance tax instalments

Tax queries 609 views 1 replies

vivekanand

partner

48 Points Joined May 2010

Dear Sir/Madam,

I know that if your tax liability is equal to or more than 10,000 Rupees; you need to pay advance tax. I also know that for non-corporate assessees the due dates and the instalments to be paid are : 30% by Sep 15th, 60% by Dec 15th and the whole amount 100% by March 15th.

MY QUESTION IS The 30%, 60% rules apply to income made before Sep-15 only. Suppose, the income is made between Dec-15 and March-15, the rules will of course be different - Can any of you enlighten me upon the methodology for advance tax payment to be followed if such is the case????? Your reply will be highly appreciated. Please do reply anybody.

Vivekanand.

Replies (1)

Giridhar S Karandikar

Team Lead

7558 Points Joined November 2011

The advance tax liability is calculated on the basis of the estimated profit for the whole financial year and the installements are paid accordingly @ 30% or 60%. This estimated profit is calcualted on the basis of the income earned during the previous F.Y.

If while calculating the AT liability for each of the quarter you think that there would be any change i.e increase/decrease in the profit then accordingly you can calculate the AT liability, deduct the AT paid in the previous installements & pay the installemtn for the current quarter accordingly.