Guide to .. Tax Management ,Tax Planning and Tax Saving

Advance Payment Of Tax [ Sections 207 To 219]

The following are the salient features of the procedure regarding Advance Tax [Sec. 207 to 219].


(a)     Where advance tax is payable, the assessee individual shall himself compute the advance tax payable on his current income at the rates in force in the financial year and deposit the same whether or not he has been earlier assessed. He need not file any estimate. The AO can also serve an order for enhanced tax based on the total income of the latest previous year for which the assessment has been made or the returned income in the latest return, whichever is higher. In such a case also the assessee shall have the right to file his own estimate for advance tax and pay tax accordingly. He may submit a revised estimate of advance tax to reduce the amount determined by the AO The assessee is also entitled to revise the instalment of advance tax as per his estimate of current income without requirement of filing a revised estimate of advance tax.

(b)     Under Section 211 upto 30%, 60% and 100 % of the advance tax payable shall be paid by non-company assessees i.e., by individuals, Hindu Undivided Families, firms, etc., by 15th September, 15th December and 15th March respectively. Any payment for advance tax before 31st March will be treated as advance tax. The threshold limit for the applicability of advance tax is 10,000.

The advance tax payable by way of Income Tax and Fringe Benefit Tax during the financial year by companies is as under:

(i) On or before 15th June



(ii) On or before 15th September



(iii) On or before 15th December



(iv) On or before 15th March



(c)     The provision for penal interest are contained in Sections 234B and 243C. The rate of interest under Section 234B for default in payment of advance tax is 1% for every month or part of a month for the period starting from 1st April of the following financial year to the date of regular assessment on the assessed tax less advance tax, if the advance tax paid falls short of 9O% of the assessed tax. Under Section 234C, the rate of interest is 1% p.m. in case of deferment of instalments of advance tax. For a shortfall in advance tax till 15th March, interest at 1% p.m. is payable.

On and from the A.Y. 2012-2013, the senior citizens are not required to pay income tax if they do not have business or profession.




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