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I want to know about advance tax system?

Ashim kr Ray (social service) (1685 Points)

19 March 2016

Sir, I am an service person an my Tax liabilities is of Rs 25000 pa after deduction of TDS.As because i have not paid the advance Tax i have to paid much interested. now for the AY 2016-17 i want to paid advance tax ,i want to know what amount to pay and how to do calculation.

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10 Replies

CA Raj Doshi (Practising CA) (8733 Points)
Replied 20 March 2016

First make computation of total income , and calcr late income tax liability thereon. Take credit of tds , rebate etc. Finally you will know the amount to be paid. Assuming you have to pay Rs.25000 after deduction of tds , therefore pay around 18000 Rs ad advance tax upto 31st March so that you can save on interest to be paid to govt.

Ashim kr Ray (social service) (1685 Points)
Replied 20 March 2016

Ok that means for the Ay 2016-17 i have to calculate the Total income on the assumption, as form 16 will be realise by department on the month of May 2016.

What if advance Tax is paid low or high,i can adjust it at the time of original calculation.i.e after getting form 16

Swami Ayyappa Nuli (TAX ADVISOR & CONSULTANT AT G.S.T SUVIDHA CENTER) (1372 Points)
Replied 20 March 2016

If you have Income from salary alone and if your employer failed to deduct T.D.S in such a way that it equals total tax liability that would be payable u/s.140A then you are not liable to pay Interest u/s.234C and pay tax directly u/s.191. Department will collect Interest that it losts from you in the form of 234C from employer in the form of 201(1A). In any other case if advance tax paid by you falls short off as prescribed under Chapter XVIIC then interest u/s.234B and C would prevail

Ashim kr Ray (social service) (1685 Points)
Replied 20 March 2016

My employer is deducting TDS. In that case what to do how to calculate assumption income before getting form 16 for Advance Tax.

Swami Ayyappa Nuli (TAX ADVISOR & CONSULTANT AT G.S.T SUVIDHA CENTER) (1372 Points)
Replied 20 March 2016

As you know Salary amount that you will receive in a year and estimate Income from House property (Base - In most of cases you will have Rental agreement), Income from P.G.B.P ( better to offer u/s.44AD if turnover does not exceed Rs.1Crore so that Advance tax provisions will not apply and also relieve you from Maintenance of Books of account u/s.44AA) and Income from other sources (Like tutions, Commissions). Advance tax provisions will not apply to Income under the head Capital gain and Winning from Lotteries, Crossword puzzles and Winnings from horse races as there is Uncertainity in estimation of Income provided tax on such income is paid either by way of T.D.S from deductor or Advance tax on or before 31st March. After having all those estimated income details then compute esitmated tax liability and pay in the form of Advance tax

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Ashim kr Ray (social service) (1685 Points)
Replied 20 March 2016

one more thing salary for the FY 2015-16 of which form 16 will be provided on the month of may 2016.Now in this month of march 2016 i have to paid advance TAX of 100%,here i want to know though i have not got the form 16 whether to calculated my salary income on assumption for which i have to pay advance TAX ,i have also FD interest.

As my last year Total Tax was 25000 including FD interest.

manoj (student) (5205 Points)
Replied 20 March 2016

One important thing salary person plus pensioners need not to pay ADVANCE TAX

you can pay challan as SELF ASSESSMENT

1 Like

Abhijeet Deshpande (Co-Founder & Manager @ Tax-Yantra) (1171 Points)
Replied 21 March 2016

Dear Sir,

Kindly check this article on Advance Tax.

/articles/ambit-of-advance-tax-26457.asp

Hope this will be handy and resolve all your queries. For any further clarification, feel free to message.

Thank You!

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Punith (Article assistant) (107 Points)
Replied 21 March 2016

Hi,

If your employer is deducting TDS it is this responsibility to deduct TDS accurately. You have to make sure that the deduction under Chapter VI proof are provided to your employer and these deductions are correct.

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Ashim kr Ray (social service) (1685 Points)
Replied 21 March 2016

Sir,

i just want to know last date of Advance Tax is 30th march.so for AY 2016-17 i have to pay advance TAX and what percentage.I have not got form 16 as march 2016 is not completed.