Welcome to
Presentation On
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.