| Persons liable to pay advance
tax
As per section 208,
w.e.f. Asst. Year 1997-98, advance tax is payable during a financial
year in every case, where the amount of such tax payable is Rs.5,000
or more. In case the tax payable after deducting TDS is less than
Rs.5,000, no advance tax is payable in view of method of computing
advance tax under section 209(1)(d). Prior to Assessment Year 1997-98,
the limit was Rs.1,500.
Due dates for payment of advance tax
The due dates for payment of advance tax are
as under :-
| For assessees other than company
: |
| On or before 15th September |
30% |
| On or before 15th December |
60% (inclusive of first instalment). |
| On or before 15th March |
100% (inclusive of earlier two instalments). |
| For company assessees : |
| On or before 15th June |
15% |
| On or before 15th September |
45% (inclusive of first instalment). |
| On or before 15th December |
75% (inclusive of earlier two instalments). |
| On or before 15th March |
100% (inclusive of all instalments). |
Advance tax paid after March 15
but on or before March 31 shall also be treated as advance tax paid
during the financial year, but interest shall be charged @ 1.25
per cent under section 234C.
If subsequent to the making of an order, but
before 1st March of the relevant financial year, a return of income
in respect of any later year has been furnished, or any assessment
for any later year has been completed at a higher figure, the Assessing
Officer can revise his order under section 210(4).
Consequences in case an assessee fails to pay
advance tax or pays less advance tax
Under section 234B, where an
assessee, who is liable to pay advance tax has failed to pay such
tax or the advance tax paid by him is less than 90% of assessed
tax, simple interest is payable @1.25% (1.5% upto 31.5.00) for every
month or part of month on assessed tax minus tax paid (i.e. TDS
plus advance tax) from 1st April of the assessment year to the date
of determination of income under section 143(1) or regular assessment.
In case any amount has been paid on self assessment, interest will
be leviable only upto the date of such payment in respect of amount
so paid.
Method of charging interest under section 234C,
when an assessee makes the payment of advance tax beyond due dates
Definition of ‘dividend’
According to section 2(14A) of the Companies
Act, 1956, the term ‘dividend’ includes any interim
dividend. It is an inclusive and not an exhaustive definition. According
to the generally accep
| The interest under section 234C has to be computed
as under - |
| (i) |
For assessees other than
companies :
under section 234C, if advance tax paid by an assessee other
than company on or before 15th September of previous year
is less than 30%of the tax due, then the assessee is liable
to pay simple interest @ 1.25% per month for the period of
3 months on the amount of shortfall. Similarly if the said
assessee pays less than 60% of advance tax on or before 15th
December of previous year, he is liable to pay interest @1.25%
per month for the period of 3 months on the amount of the
shortfall.
Further if the advance tax paid by any assessee on or before
15th March is less than the advance tax due, such assessee
shall also be liable to pay simple interest @ 1.25% on the
amount of the shortfall. |
| (ii) |
For company assessees
:
With effect from assessment year 1995-96, in case of a company
which is liable to pay advance tax under section 208, has
failed to pay such tax or the advance tax paid by the company
on or before 15th June is less than 15% of the tax due on
the returned income or the amount of such advance tax paid
on or before 15th September is less than 45% of the tax due
or the amount of such advance tax paid on or before 15th December
is less than 75% of the tax due,then the company shall be
liable to pay simple interest @ 1.225% per month for a period
of 3 months on the amount of the shortfall from 15% or 45%
or 75% as the case may be, of the tax due on the returned
income. Further, if the advance tax paid by any assessee,
on or before 15th March is less than the tax due, the company
shall be liable to pay simple interest @ 1.25% on the amount
of the shortfall from the tax due. |
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