According to the income tax department payment of advance, are according to four installments as below:
| Due Date | Advance tax Payable |
| On or before 15th June | 15% of estimated Advance Tax |
| On or before 15th September | 45% of estimated Advance Tax |
| On or before 15th December | 75% of estimated Advance Tax |
| On or before 15th March | 100% of estimated Advance Tax |
The last date for filling ITR is 31st July 2018, on that date we are supposed to pay 100% tax liability.
My question is how both are possible?
Please Elaborate.
You are paying Advance tax for current. Year 18-19 .
If the Income tax liability of any tax payer in more than Rs 10000/- in a Financial year , then he is liable to pay advance tax in installments during the year itself rather than paying this tax at end of the year .
Ok, Now I have a tax liability of more than 10000 in FY 2017-18, I am supposed to pay taxes in four installments so why 31st July is the last date?
If your tax liability for the year 2018-19 more than 10000/- , you are suppose to pay advance tax in 4 installments and last date is 15th march 2019 . You are paying advance ta for current year 2018-19 not for 2017-18 , as you mentioned above .
Ok thanks, but we have to assume total tax liability of current year my first installment is on 15th June and I have to pay 15% of estimated Tax liability, which I have to assume on 15 June till 31 March.
Let's say my estimated assumption is 10000/-, On 15 June I paid 15% i.e. 1500/- as the first installment.
Now on year completion, my tax amount goes to 13500/-, Now I have paid less amount in installments. So I have to pay penalty u/s 234B &C,
Why?
CAclubindia
