Installments of Advance Tax and Due Dates under Section 211

Friends,

            In the case of non-company assessees, advance tax has to be paid in three installments.   However, in the case of a company assessee, advance tax is payable in four installments.  The relevant due dates of installments are given below:- 


For Company Assesses
1. On or before the 15th June.
  • Not less than 15% of advance tax liability.
2. On or before the 15th September.
  • Not Less than 15% of advance ta liability, as reduced by the amount, if any, paid to the earlier installment.
3. On or before the 15th December
  • Not less than 75% of advance tax liability, as reduced by the amount(s) if any, paid in the earlier installment(s).
4. On or before the 15th March
  • The whole amount of advance tax liability as reduced by the amount(s) if any, paid to the earlier installment(s).
For Non-Company Assesses
1. On or before the 15th September.
  • Not Less than 30% of advance ta liability;
2. On or before the 15th December
  • Not less than 60% of advance tax liability, as reduced by the amount(s) if any, paid in the earlier installment(s).
3. On or before the 15th March
  • The whole amount of advance tax liability as reduced by the amount(s) if any, paid to the earlier installment(s).
Note :-
  1. Although, last date of payment of whole amount of advance tax is 15th March of the relevant financial year, but any amount paid by way of advance tax on or before the 31st March shall also be treated as Advance Tax paid for that financial year.  The assessee will, however, be liable to pay interest on the late payment. 
  2. If the advance tax is payable on the basis of order/amended order passed by the Assessing Officer which is served after any of the due dates specified above, the appropriate amount or the whole amount of the advance tax, as the case may be, specified in such order, shall be payable on or before each of such of those dates as fall after the date of service of the order. 
  3. After making the payment of 1st/2nd installment of advance tax, the assessee can increase/decrease the amount of remaining installments of advance tax in accordance with his revised estimates of Current Income.  In this case, he will have to pay interest for short-payment of earlier installments. 
  4. If the last day for payment of any installments of advance tax is a day on which receiving bank if closed, the assessee can make the payment on the next immediately following working day, and in such cases, the mandatory interest leviable under sections 234B and 234C would not be charged. [Circular No 676, dated 14 January, 1994].
Detailed Circular : No. 676, dated 14-1-1994.
SECTION 211 l INSTALMENTS OF ADVANCE TAX
1197. Whether, in case last day for payment of any instalment of advance tax is day on which receiving bank is closed, assessee can make payment on next immediately  following working day, and in such cases mandatory interest leviable under sections 234B and 234C would not be charged
1. Representations have been received by the Board seeking waiver of interest chargeable under sections 234B and 234C of the In­come-tax Act, 1961 for default in payment of instalments of ad­vance tax by the due dates which are prescribed under section 211 of the Income-tax Act. In cases where the last date for making payment of such instalments (i.e., 15th September, 15th December and 15th March) happens to be a holiday and the assessee pays the due amount of advance tax on the next working day.
2. The matter has been carefully considered by the Board and it is felt that in such cases section 10 of the General Clauses Act, 1897 will be applicable. This section lays down that where any Act or proceeding is directed or allowed to be done or taken in any Court or office on a certain day or within a prescribed period, then, if the Court or office (in the present case the bank which is authorised to receive payment of advance tax from the assessee) is closed on that day or on the last day of the prescribed period, the Act or proceeding shall be considered as done or taken in due time after it is done or taken on the next day, afterwards, on which the Court or office (or the bank) is open. In view of this provision, it is hereby clarified that if the last day for payment of any instalments of advance tax is a day on which the receiving bank is closed, the assessee can make the payment on the next immediately following working day, and in such cases, the mandatory interest  leviable under sections 234B and 234C of the Income-tax Act, 1961 would not be charged.

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