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Presented by :- Shankey Dogra

 Meaning  Why advance tax ? of advance tax  Computation  Payment of advance tax .

 Advance tax is payable on current income in installments during the previous year. Advance payment of tax is another method of collection of tax by the central govt.  Scheme of advance payment of tax is also known as “ Pay as you Earn” scheme. . in the form of pre – paid taxes.

then assessee may spend income for other purposes. then some assessee may use the deferment period for avoiding / evading taxes by falsification of accounts / using colored schemes / using colored arrangements / concealing income . • If tax collection is deferred to assessment year. then collecting full tax in assessment year. • It is easier to collect tax in installments in the previous year .Why Advance Tax? • For raising tax revenue at the earliest possible occasion • Pay as you earn • If collection not made promptly. making subsequent collection difficult.

10000/. 90.or more. • Step VIII: Pay advance tax as per scheme of installments . 91 • Step VI : Deduct tax deductible or collectible at source from any income • Step VII : Balance Amount is advance tax payable if it is Rs. add surcharge. if applicable • Step IV : Add education cess @2% + SHEC @1% • Step V : Allow relief u/s 89. 90A.Computation of Advance Tax .where the calculation is made by assessee himself – Sec 209 • Step I : Estimate current income of the previous year for which advance tax is payable • Step II: Compute tax on such estimated current income at specified tax rates • Step III : On the net tax.

On or before 15th March . On or before 15th September Amount Payable Not less than 15% of advance tax liability Not less than 45% of advance tax liability (-) less advance tax paid in earlier instalment Not less than 75% of advance tax liability (-) less advance tax paid in earlier instalment(s) Whole amount of advance tax liability (-) less advance tax paid in earlier instalment(s) 3. 4 installments are as under: Due Date Of Installments 1. On or before 15th June 2. On or before 15th December 4.Installments of Advance Tax & Due Dates – Sec211 For Company assesses • For company assessees .

Installments of Advance Tax & Due Dates – Sec211 For Non-Company assesses • For Non-company assessees . On or before 15th December Not less than 60% of advance tax liability (-) less advance tax paid in earlier installment Whole amount of advance tax liability (-) less advance tax paid in earlier installment(s) 3. On or before 15th March . On or before 15th September Not less than 30% of advance tax liability 2. 3 instalments are as under: Due Date Of Instalments Amount Payable 1.

By the assessee on his own under sec. Payment of advance tax in pursuance of an order /amended order of Assessing Officer U/s 210(3) & 210(4). . b.a. 210(1).

then entire amount of tax payable (after deducting TDS) on such capital gain / casual income should be paid in remaining installments which are due OR latest by 31st March. if no installments are due.  It is normally not possible for an assessee to estimate his capital gains or casual gains or winnings from lotteries etc which are generally unplanned / unexpected. If such income arises after due date of any installment. .

 Assessee  Credit deemed to be in default (sec. 234b)  Interest for deferment of advance tax (sec. 219) payable if advance tax is not paid  Interest or advance tax paid is less than 90% (sec. 218) for advance tax (sec. 234c) .

except for 15th march where it will be 1% for one month.Consequences If Advance Tax is not paid or paid less or there is deferment of payment of Advance Tax • If advance tax is not paid or advance tax paid is less than 90% of assessed tax. After the end of financial year (previous year). interest @1% per month. shall be payable for every deferment. • • . for a period of 3 months. outstanding tax liability is to be cleared through payment of self assessment tax. then assessee shall be liable to pay simple interest @1% per month on unpaid portion from 1st day of April following the financial year – sec 234B If payment of advance tax is deferred beyond due dates.

. ADVANCE TAX -is tax paid in advance based on estimated income likely to be incurred during the year.  Computation and payment of advance tax  Payment of advance tax.