Advance Income Tax :-Last Installment due on 15th March, 2013

Friends,    15th March, 2013 is the last installment  for deposit of Advance Income Tax for the Assessment Year 2013-14.  Each and every assessee should  deposit Advance Tax in time so that interest and penalty could not be imposed.   Some clarity regarding Advance Tax is given below :-


Are you liable to pay advance tax?
Advance tax is payable only when an assessee’s total tax liability exceeds Rs 10,000.00
Advance tax –Dates and Rates
For Non corporate assessee installments of advance tax is to be paid as per the below
               30% of tax payable should be paid as advance tax on or before 15th September
               60% of tax payable should be paid as advance tax on or before 15th December
               100% of tax payable should be paid as advance tax on or before 15th  March
There are 4 installments of advance tax for corporate assessee.
               15% of tax payable should be paid as advance tax on or before 15th June
               45% of tax payable should be paid as advance tax on or before 15th September
               75% of tax payable should be paid as advance tax on or before 15th December
               100% of tax payable should be paid as advance tax on or before 15th March
 Consequences of Non-payment of advance tax –
If the amount of advance tax paid is less you will have to pay penalty interest as per the below

For Non Corporate assessee –
If advance tax paid in the first two installments is less than specified, simple interest @ 1% per month is charged on the deficit amount for a period of 3 months.

If the aggregate of advance tax paid is less than 90% of tax payable on 15th March penalty of simple interest @ 1% per month is charged on the amount shortfall until the tax is paid

For Corporate assessee –
Simple interest @ of 1% is charged on the deficit amount for a term of 3 months if you have failed to pay advance tax or if advance tax paid is less than tax due as per the above slab. For the 4th and final installment if the advance tax paid is less than 90% of tax payable simple interest @ 1% per month is charged on the deficit from 1st April until the tax is fully paid.

How to pay advance tax?
Advance tax can be paid online through the website of income tax department. It can also be paid by filling challan, ITNS 280 and submitting it at designated branches of specified banks. SBI, Corporation bank and ICICI are some of the banks that accept advance tax payments.

What if Advance tax paid is more than required?
If the amount paid as advance tax is higher than the total tax liability, the assessee will receive the excess amount as a refund. Interest @6% p.a will be paid by the income tax department to the assessee on the excess amount if the excess amount is more than 10% of tax liability.

Download free Advance Tax or another Calculators (click here

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