Skip to main content

Advance Tax/Self Assesment Tax and Interest u/s 234B and 234C


Read more about Tax filing @ http://tips4ufromsony.blogspot.com/2011/07/income-tax-process-and-e-filing.html .

If you are a salaried person there is tax deduction at source (TDS), which takes care of the tax payments for your salary. At the same time, there will be additional liabilities for income like interest on deposits, bonds and even capital gains which might require you to pay Advance Tax. Advance tax has to be paid in several installments in September, December and March. Self-assessment tax is the difference between the tax paid and the tax payable.You can figure out the self-assessment tax amount when you make the final income tax calculation. There is no specific date for paying this tax but it has to be done before you file your income tax return so that no further amount of tax remains to be paid.

While computing advance tax, income-tax on the current income has to be first determined and the tax on such income has to be determined. As per section 208, advance tax shall be payable in every case where the amount of tax payable by the assessee during that year is in excess of Rs. 5,000. As per section 211, advance tax is payable by companies in four instalments and by non-corporate assessees in three instalments. In cases of corporate assessees, advance tax is payable as under:

Due date of instalment Amount payable
On or before 15/6 Not less than 15%
On or before 15/9 Not less than 45%
On or before 15/12 Not less than 75%
On or before 15/3 The whole amount or 100%

If an assessee fails to pay the amount as above or if the amount paid falls short of the amount payable as under, he would be liable to interest @ 1% p.m. for a period of 3 months with respect to the first three instalments and for one month for the fourth instalment.

In the case of a non-corporate assessees, advance tax is payable in three instalments as given below:

Due date of instalment Amount payable
On or before 15/9 Not less than 30%
On or before 15/12 Not less than 60%
On or before 15/3 The whole amount or 100%

If an assessee either fails to pay the whole of advance tax or where the advance tax paid by him is less than 90% of the assessed tax, he shall be liable to interest @ 1% per month (@ 1.25% up to 7-9-2003) or part of the month from the 1st April of the assessment year to the date of determination of total income u/s. 143(1) and where regular assessment is made, to the date of such regular assessment. No interest is payable if the advance tax paid is 90% or more of the assessed tax.

Find more @ http://www.vipca.net/interest-defaults-payement-advancetax-interest-payable.php
Labels:

Comments

Post a Comment

Popular posts from this blog

Google Chrome shortcut keys

If you are a Google Chromey guy, please find below the list of shortcut keys for some of the most used features  :-) Find more shortcut keys @  http://www.google.com/support/chrome/bin/static.py?page=guide.cs&guide=25799&topic=28650
4 comments
Read more

Eclipse plug-in - More Clipboard

More Clipboard is an Eclipse plug-in which keeps track of the latest entries copied/cut into clipboard buffer and allows you to quickly access these entries. http://sourceforge.net/projects/moreclipboard/ http://marketplace.eclipse.org/content/more-clipboard
Post a Comment
Read more

Basic design decisions for a commerce search setup ( with an ATG Search view)

In this blog I would like to explain the basic set of configuration/design decisions needed to setup an ATG search project. Most of these design decisions are common for all Enterprise search applications. 1. Decide the searchable properties :   This means the properties that the business want the user to search in the ecommerce platform. In ATG search these are configured as the text properties in the product-catalog-output-config.xml ( the definitionFile of the \atg\commerce\search\ProductCatalogOutputConfig). Usually the displayName of product/sku, displayName of department/category/sub-category, skuId, brandName are the properties configured as searchable. 2. Decide the search refinement properties or the faceted properties :   After a user search for a keyword, search refinement is the next step done to filter his results. ATG supports the search refinement using the Faceted Search concept. Read more about facted search @...
6 comments
Read more

Eclipse Luna - Good features of Eclipse 4.4 JDT / Workbench

Split editors Do you ever find yourself working in a large file and need to view or edit multiple sections at once ? You can now split / unsplit the currently active editor. Use quick access and type split to get different options. Dark theme A new dark window theme has been introduced. You can enable it from the General > Appearance preference page. Show In System Explorer If you select a resource and right click, there is now a Show In>System Explorer context menu entry that will open the folder containing that resource in your system's file explorer. New layout for minimized views Minimized views can have a different display mode by right-click on the "Restore" button of a minimized stack and select the "Show in the Original Location" menu item. Filter conflicting projects during import When importing existing projects, you can now filter out any conflicting projects (projects that are already present in your workspace). Quick Fixes ...
Post a Comment
Read more

Intimation u/s 143(1) of the Income Tax act

Have you got your Income Tax filing e-receipt ? After a successful assessment of tax returns, income tax department issues Intimation u/s 143(1). Normally these intimations will be received through email to the Email address provided when filing income tax returns online. If “NET AMOUNT REFUNDABLE /NET AMOUNT DEMAND”  is less than Rs 100, you can treat this Intimation u/s 143(1) as completion of income tax returns assessment under Income Tax Act. It can be useful for the proof of Income/ Completion of income tax returns assessment. In case of demand , we need to pay the entire Demand within 30 days of receipt of this intimation.The payment can be made using the printed challan enclosed in the mail or you can go for online tax payment. The Tax Payment challan is enclosed if the Tax Payable exceeds Rs. 100. If you go for online tax payment, follow the instructions listed @   http://tips4ufromsony.blogspot.com/2011/03/online-income-tax-payment-using.html  a...
2 comments
Read more