ADVANCE TAX

When are you Liable to Pay Advance Tax?

1. If your Estimated Tax Liability is more than Rs. 5,000/- and
2. No TDS was done by your Employer or your Service Receiver.

For Example: 1.If your expected Tax liability is around Rs. 15,000/- and Your Employer Did not Deduct Tax at Source for some reason (TDS) then you are liable to Pay your Advance tax in 3 Installments(Individual).


When you are Not Liable to Pay Advance Tax?

1. If your Estimated Tax Liability is Less than Rs. 5000/- then you are Straight away not liable to pay advance Tax(or)
2. Even if your Estimated Tax Liability is more than Rs. 5000/- but your Employer or your Service Provider Deducted Tax at Source and there is no Tax Liability after deducting TDS Amount from your Estimated Final Tax Liability .

For Example: If Your Tax Liability is around Rs. 20,000/- but your Employer already Deducted Tax at source of Rs. 20,000/- then it is obvious that you need not pay Advance Tax.

HERE ARE THE DUE DATES FOR THE PAYMENT OF ADVANCE TAX:

Due Date Schedule for “Companies”

Due Date of Installments on or before

Amount Payable

1.     15TH June Not less than 15% of such Advance Tax
2.     15th September Not less than 45% of Such Advance tax Less: Advance tax paid in the First Installment prior to this installment
3.     15th December Not less than 75% of Such Advance tax      Less: Advance tax paid (if any) in the First & Second Installment(s) prior to this installment.
4.     15th March 100% of Such Advance Tax                             Less: Advance Tax (if any) in the I, II & III Installment(s) prior to this Installment

Source: TheTaxInfo.com


Due Date Schedule for “all Assesses” (Other than Corporates’)

Due Date of Installments on or before

Amount Payable

1.     15th September Not less than 30% of such Advance Tax
2.     15th December Not less than 60% of Such Advance tax                        Less: Advance tax paid in the First Installment prior to this installment(s)
3.     15th March Not less than 100% of Such Advance tax                     Less: Advance tax paid (if any) in the First & Second Installment(s) prior to this installment.

Source: TheTaxInfo.com

Note:

1. Advance Tax Mentioned above includes TDS deducted by the other party against payment made to you.

2. (Download your Advance Tax Challan here).

One thought on “ADVANCE TAX

  • September 27, 2011 at 4:02 pm
    Permalink

    hi everybody i am interested in taxation so pls give some information about advance tax

    Reply

Leave a Reply

Your email address will not be published. Required fields are marked *

Connect with Facebook

+Dilip Kumar