Income tax doubts:PCC nov09

A) 1-Advance tax is payable in financial year

2-advance tax amt calculated as under..

    estimated income of the year----        

     tax on it-----                                        x

less- tds/tcs/mat credit/relief u/s 90 etc  y

balance is advance tax payable                z

3- it is payable in installment

say in case of other than co. Assessee-----

-on or before 15 sept-----not less than 30% of advance tax liability

-on or before 15 dec-----not less than 60% of advance tax liability minus earlier paid

-on or before 15 march----100% of advance tax minus earlier paid

well now if assessee doesn’t paid advance tax or defer the installment  then assessee is liable to pay interest u/s 234C @ 1% simple interest

now as u can see that advance tax calculation on estimated basis so in case of capital gain and casual income like lottery etc we can’t estimate income derived from it and accordingly advance tax cant be estimated .

in such case we can pay it(advance tax) by 31 march not in installment….it is for benefits of assesee

it is the proviso of section 234C where income from capital gain and casual income then assessee are exempt from interest which he has to paid u/s 234C due to deferment of advance tax

well I have not given the full detail of sections. it is only for your understanding. if u have any further doubt then plz ask…….

B) there are some perquisite on which employee has to pay tax….but employer on his option can pay it on behalf of employee and same will be exempt ie employee will have not to pay any tax on it..

“notwithstanding anything contained in section 200 of the Companies Act, 1956.”

Provision of section 200 of the Companies Act prohibits a company from paying tax-free salary to its officers or employees.

C) for gift refer section 56(2)(vi)..from your text book

one thing more in 10(10CC)..is that tax paid by employer will not be regarded as perquisite and same woud not be allow to the employer as an exp u/s 40

well the above exemption will be availed only where tax is paid on non monetary perquisite....