Advance payment of Tax - My Commerce Info

Tuesday, June 14, 2016

Advance payment of Tax

Advance payment of Tax is paid by Assesse himself of herself. This tax is paid on the current year’s income in the same year. It is paid as... thumbnail 1 summary
Advance payment of Tax is paid by Assesse himself of herself. This tax is paid on the current year’s income in the same year. It is paid as a advance that why it is known as Advance payment of Tax.
Advance payment of Tax is not charged on those Assesse whose income are comes under “Income from Salary”. Under any income where TDS is already deduct, Advance payment of Tax is not chargeable.

Conditions where Advance payment of Tax is not compulsory

Any Assesse or person who does not have any income from any “Business or Profession”.
If the age of Assesse is 60 years or more than 60 years then they are not need to pay Advance payment of Tax.
Income from Other Sources like income from dividend or lottery. Here TDS is deduct. These are casual incomes therefore Advance payment of Tax is not charged.

Who will pay Advance payment of Tax

The person whose income are taxable or liable to pay tax as per the Finance Act 2015 and the amount of tax is Rs. 10,000 or exceeds Rs. 10,000 than Advance payment of Tax is paid by using current year income.

Who will calculate the amount of Advance Tax

Self Assesse : Assesse can himself or herself calculate the amount of tax by following current Finance Act.
Aseesing Officer: If assessment would be made by Assessing Officer than advance tax would be calculate just before the current year or any other previous year’s income whichever is more.

Payment of tax

Date and number of installment is fixed as per Income Tax Law

1. Non Corporate Assesse: [ BOI, Individual, HUF, Partnership Firm]


1)15 September of the Current year = 30% of total advance tax
2)15 December of the Current year = 60% or next 30% of total advance tax
3)15 March of the Next year = 40% of total advance tax

2. Corporate Assesse:


1)15 June of the Current year = 15% of total advance tax
2)15 September of the Current year = 45% of total advance tax
3)15 December of the Current year = 75% of total advance tax
4)15 March of the Next year = 25% of total advance tax






No comments

Post a Comment