Ramesh Babu (Mr.) (24 Points)
14 March 2020Hi,
Is it okay if I over-estimate my advance tax and pay it? What if my paid advance tax is actually higher than the tax I would need to pay after determining my accurate income after the end of the financial year?
Bonus Question: Can I include expenses like insurances, investments etc. if I make them after the 31st of march but before filing my IT returns?
Thank you
Spurto Consultancy Services
(Consultant)
(1891 Points)
Replied 14 March 2020
1. Yes its ok to pay higher advance tax. If one pays lesser amount of advance tax then he/she had to bear the interest u/s 234B/C.
2. You will receive refund of the amount over the total tax liability at the time of return filing.
3. Yes, you should take effect of all your business expenses, investment made in personal name for calculating the last installment of advance tax.
Ramesh Babu
(Mr.)
(24 Points)
Replied 14 March 2020
Thank you for answering my questions.
I think I confused you by the bonus question, I should have phrased the bonus question better, sorry about that. My bonus question was not related to advance tax calculation, but to the final tax calculations and whether if I can claim deductions on investments, insurance that I purchase after 31st match. I think the bonus question deserves its own thread, so I will post it there.
RAJA P M
("Do the Right Thing...!!!")
(128111 Points)
Replied 14 March 2020
CAclubindia
