Pay as you earn – Advance TAX | Chartered Accountants

Tuesday, 15 March 2016

1.- Section 208

An assessee is liable to pay Advance Tax only if his ‘Advance Tax’’ Liability is Rs.10,000 or more during the previous year.
An individual whose age is 60 years or more at anytime during the previous year is not required to pay Advance Tax if his Total Income does not carry income under the head Profit and Gains from Business and Profession.
While computing Advance Tax Liability, TDS/TCS amount shall not be reduced if the person liable to deduct TDS has failed to deduct or if the person liable to collect TCS has failed to collect it.

2.- Due Date of Payment of Advance Tax

Due Date	% of Advance Tax required to be deposited (CORPORATE ASSESSEE)	% of Advance Tax required to be deposited (OTHER THAN CORPORATE ASSESSEE)
15th June	15%	0%
15th Sept.	45%	30%
15th Dec.	75%	60%
15th Mar.	100%	100%

3.- Section 210

An Assessing officer may require assessee to pay Advance Tax by serving notice u/s 210 at an amount and in such manner as may be specified in the notice.
No Appeal is possible against order u/s 210
No order u/s 210 can be issued after 28th Feb of previous year.
No order u/s 210 can be issued where no assessment has been made in respect of any Assessment year.
Amount of Advance Tax required to be deposit shall be computed by Assessing officer on the following manner :
:- Last Assessment made
:- Return filed by Assessee
Whichever is higher.
An assessee may voluntarily pay Advance Tax at an amount higher than the amount specified in order u/s 210

4. – Computation of Advance Tax Liability

Items	Amount
Income under head Salary	xxx
Income under head House Property	xxx
Income under head Capital Gain	xxx
Income under head Other Sources	xxx
Income under head P/G/B/P	xxx
Gross Total Income	xxx
(-)Deductions under chapter VI-A	xxx
Total Income	xxx
Tax on Total Income	xxx
(-) TDS / TCS	xxx
(-) MAT credit	xxx
(-) Section 89(1) relief	xxx
(-) Relief u/s 90 & 91	xxx
TOTAL ADVANCE TAX LIABILITY	xxx