Friends Do you know ? that second installment of Advance Income Tax is due on 15th Sep 2016. w.e.f. 01-06-2016 , new schedule has been given by Income Tax Department vide which there is no difference between company case or non-company case. All assessees are liable to pay Advance Income Tax on same due dates. The liability for Payment of Advance Income Tax only arises when Income Tax liability stands more than Rs. 10,000 in a Financial Year.
for All Income Tax Assessees (Company or other than Companies)
However in case of Senior Citizen (not having business income) there is no liability of Advance Income Tax. They are totally exempt for payment of advance tax and can pay their income tax till the due date of filing of Income Tax Return.
Interest on Late Payment of Advance Tax
If the Income Tax is not payable as per the above schedule, Interest is liable to be paid for late payment of tax as follows
- Interest under section 234C – Interest @ 1% per month is payable if the tax is not paid as per the above schedule i.e. for Deferment in Installments of Advance Tax
- Interest under section 234B – Interest @ 1% is payable if 90% of the tax is not paid before the end of the financial year i.e. for Default in Payment of Advance Tax
For computing Interest u/s 234A/B/C and any other Interest, Income Tax shall be rounded off to nearest hundred and fraction of hundred shall be ignored