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ADVANCE TAX & INTEREST PROVISION

Advance Tax

Tax is Paid in Advance when Tax Liability is More than 10,000.

Advance Tax is Paid in the Previous Year Itself, Thus the Tax is Paid in the year of Earning Income Itself

The Tax is Paid as income is earnedThis Scheme of Advance Payment of Tax is also

Called as Pay as you earn income

Due Date for Advance Tax Payment{ in case of assesses (other than Companies)}

Due Date Tax Amount Liable to Pay

on or before 15th September

on or before 15th December

on or before 15th March

Not Less than 30% of such advance tax

Not Less than 60% of such advance tax as reduced by the amount, if any paid in the earlier Installment

The Whole Amount of such advance tax as reduced by the amount, if any paid in the earlier Installment or Installments

Due Date for Advance Tax Payment{ in case of Companies}

Due Date Tax Amount Liable to Pay

on or before 15th June

on or before 15th September

on or before 15th December

on or before 15th March

Not Less than 15% of such advance tax

Not Less than 45% of such advance tax as reduced by the amount, if any paid in the earlier Installment

Not Less than 75% of such advance tax as reduced by the amount, if any paid in the earlier Installment

The Whole Amount of such advance tax as reduced by the amount, if any paid in the earlier Installment or Installments

Interest on Tax Liability

Payable by Assesse

Receivable by Assesse

Payable By Assesse Receivable by Assessee

Section 234A Section 234BSection 234CSection 234D Section 220(2)

Section 244A

Section 234A

For Delay or Failure in Furnishing The Return Interest at 1% on Tax Liablity For Calculation of Interest Part of Month is Taken as a Month 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

Section 234B

Interest is Payable

Liable Tax Amount

Interest Rate

Period

An Assesse who is Liable to pay Advance Tax has failed to pay Such Tax

An Assesse who has paid Advance Tax but the Amount of advance Tax Paid is Less than 90% of assessed Tax

on assesed Tax

Assessed Tax Minus advance Tax

1% for every month or Part of Month

1% for every month or Part of Month

From 1st April of the Assessment year to the date of determination of total income or where regular assessement is Made to the date of such regular assessement

From 1st April of the Assessment year to the date of determination of total income or where regular assessement is Made to the date of such regular assessement

Section 234CIn case of a Non Corprate Assesse

Interest is Payable

Interest Rate Liable Tax Amount

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

30% on Tax Amount Minus Advance Tax Paid

60% on Tax Amount Minus Advance Tax Paid

Tax Amount Minus Advance Tax Paid

3 Months

3 Months

Nil

Section 234CIn case of a Corprate Assesse

Interest is Payable Interest Rate Liable Tax Amount

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

15% on Tax Amount Minus Advance Tax Paid

45% on Tax Amount Minus Advance Tax Paid

75% on Tax Amount Minus Advance Tax Paid

Tax Amount Minus Advance Tax Paid

3 Months

3 Months

3 Months

Nil

Section 234D

Where the amount refund Granted to Assesse exceeds the amount refundable on regular assesment or Where the refund granted is not due on regular assessment, Interest at 1.5% for every Month, a part of Month is also consider as a Month, Period is from Date of grant of refund to the date of such regular assessment.

Section 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

Section 244A

Under this section Interest is receivable by assesse

Interest on excess payment of advance tax, tax collected or collected at source and any other tax or penalty becoming refundable Interest at 1.5% for every Month, a part of Month is also consider as a Month, It May be Noted that interest allowed u/s 244A is to be treated as income of the previous year in which it is allowed is therefore, required to be declared in the return of income for the corresponding assessment year.