INTRODUCTION

Advance Tax is pre paid tax by the assesses on the income earned

during the year. In simple words, assesses have to pay taxes in

advance on the estimate income during the year in three installment

for individual assesses and four installments for companies and

corporate assesses.

Advance Payment of Tax is also called as Pay as you earn income

WHEN TO PAY: Advance tax is payable if the total tax liability after

reducing the TDS is Rs. 10,000/- or more.

Senior citizen who do not have any income from business are

exempted from the payment of advance tax w.e.f 01/04/2012

Advance Tax Installments & Due Dates for

Corporate Assessees & Non Corporate

Assessees

Due Date Tax Amount Liable to Pay

15th June At least 15% of Tax on total income for the year.

15th September At least 45% of Tax on total income for the yea

15th December At least 75% of Tax on total income for the year less

advance tax already paid

15th March 100% of Tax on total income for the year less advance

tax already paid

Advance Tax Installments & Due Dates for

Corporate Assessees & Non Corporate

Assessees

Due Date Tax Amount Liable to Pay

15th June At least 30% of Tax on total income for the year.

15th

September

At least 60% of Tax on total income for the year less

advance tax already paid

15th

December

100% of Tax on total income for the year less advance tax

already paid

Interest on

Tax Liability

Payable by

Assesse

Receivable

by Assesse

Payable By Assesse Receivable by

Assessee

Section 234A

Section 234B

Section 234C

Section 234D

Section 220(2)

Section 244A

INTEREST U/S 234A:

For Delay or Failure in Furnishing The Return

Simpal interest @1% fore every month & part

thereof from due date of filing of return to the date

of furnishing of return

Period of Interest Payable

In case of Companies or Assesse covered under Tax Audit From 1st October of the Assessment year to the Date of Furnishing the return of Income

In case of any other Assesse From 1st August of the Assessment year to the Date of Furnishing the return of Income

INTEREST U/S 234B

If you do not pay advance tax at all or if the

aggregate paid on 31st March is less than

90% of the total tax payable, you will have to

pay an interest of 1% per month on the

deficit amount from 1st April of the following

year till the date you file your return

INTEREST U/S 234C

In case of Corporate Assesses

Interest is Payable Interest Rate Period

If Advance Tax is paid on or

before

September 15 is Less than

30%

If Advance Tax is paid on or

before

December 15 is Less than

60%

If Advance Tax is paid on or

before

March 15 is Less than 100%

1% for every month or Part

of Month

1% for every month or Part

of Month

1% for every month or Part

of Month

3 Months

3 Months

1 Month

INTEREST U/S 234C

In case of a Non Corporate

Assesses

Interest is Payable Interest Rate Period

If Advance Tax is paid on or before

June 15 is Less than 15%

If Advance Tax is paid on or before

September 15 is Less than 45%

If Advance Tax is paid on or before

December 15 is Less than 75%

If Advance Tax is paid on or before

March 15 is Less than 100%

1% for every month or Part of

Month

1% for every month or Part of

Month

1% for every month or Part of

Month

1% for every month or Part of

Month

3 Months

3 Months

3 Months

1 Month

INTEREST U/S 234D:

When any refund is granted to the assessee u/s

143(1) and on regular assessment it is found that

either no refund is due or the amount already

refunded exceeds the refund determined on

regular assessment. The interest is levied @ 0.5%

on the whole or excess amount so refunded for

every month or part thereof from the date of grant

of refund to the date of such regular assessment.

INTEREST U/S 220(2)

If the assesse fails to pay any tax within 30 Days from the

date of receipt of the notice of Demand issued u/s 156, shall

liable to pay interest,

Interest at 1% for every Month, a part of Month is also

consider as a Month,

Period is from Expiry of 30 Days of the service of the

demand notice

Under this section Interest is receivable by assessee

If the amount of advance tax you paid was more than 10% of

the applicable advance tax amount, they will pay you 0.5%

interest per month.

INTEREST U/S 244A:

General information: To pay advance tax online log on to

www.tin-nsdl.com, click “Pay taxes online”. Select challan

no.ITNS 280 and proceed.