Thursday, September 15, 2011

15th September Last Date for Payment of Advance Tax

Friends,  Pay your Advance Tax installment in time.  Ist installment for Non-company and 2nd for Company cases is due on 15th September for payment of Advance Tax on your estimated Income.  Advance Income Tax liability rises only when Income Tax on estimated income comes Rs. 10000 or above.  Simple excel based Advance Tax Calculator is also available here (Click Here)

        If the tax payer does not make payment of advance tax voluntarily, the assessing officer can issue a notice at any time during the financial year, but not later than the last day of February asking him to pay the advance tax in specified installments. Such notice is ordinarily based on the assessed income of the tax payer for the latest year. The assessee in that case has an option to pay advance tax on the basis of his own estimate if he considers that his current income during the relevant accounting period would be less than the income on the basis of which advance tax has been demanded from him. The assessing officer can modify his notice of demand in certain circumstances. Similarly, the assessee can also revise his estimate any number of times and after adjusting the amount already paid, if any, pay the balance in installments falling due after the revised estimate. 

Consequence of Default of Delay

Delay in furnishing the return attracts charge of interest for every month or part of a month for the period of dealy on the amount of tax found due on the proceesing of return or on regular assessment (refer para 13.6) after giving credit for advance tax and tax deducted at source. In case of failure to file the return such interest is to be calcuted upto the date of best judgement assessment under sec.144. 

A person liable to tax is required to file a return of income with the Assessing Officer having jurisdiction over his case. The return forms for the purpose can be obtained from any Income Tax Office or from a specified Post Office. The assessee before filing the return is expected to compute the tax on his returned income by way of self-assessment and if there is any additional liability of tax, the assessee is required to pay the same. The unpaid tax if any is recovered according to the procedure specified in the Act. 

For the convenience of non-residents liable to Indian Income Tax, Non -residents Circles have been created in big cities namely, Bombay, Delhi, Calcutta, Madras, Cochin and Ahmedabad. Any person who is a non-resident and has not yet been assessed to tax any where in India, may file his income tax return in any of the above mentioned Non-resident Circles. However, once he files return in any of these Circles, Jurisdiction over his case will continue to be with circle unless it is change under orders of the appropriate authority.

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