Friends, 15th March, 2013 is the last installment for deposit of Advance Income Tax for the Assessment Year 2013-14. Each and every assessee should deposit Advance Tax in time so that interest and penalty could not be imposed. Some clarity regarding Advance Tax is given below :-
Are
you liable to pay advance tax?
Advance tax is payable only when an
assessee’s total tax liability exceeds Rs 10,000.00
Advance
tax –Dates and Rates
For Non corporate assessee
installments of advance tax is to be paid as per the below
•
30% of tax payable should be
paid as advance tax on or before 15th September
•
60% of tax payable should be
paid as advance tax on or before 15th December
•
100% of tax payable should be
paid as advance tax on or before 15th
March
There are 4 installments of advance tax for corporate assessee.
•
15% of tax payable should be
paid as advance tax on or before 15th June
•
45% of tax payable should be
paid as advance tax on or before 15th September
•
75% of tax payable should be
paid as advance tax on or before 15th December
•
100% of tax payable should be
paid as advance tax on or before 15th March
Consequences of Non-payment of advance tax –
If the amount of advance tax paid is less you
will have to pay penalty interest as per the below
For
Non Corporate assessee –
If advance tax paid in the first two
installments is less than specified, simple interest @ 1% per month is charged
on the deficit amount for a period of 3 months.
If the aggregate of advance tax paid is less
than 90% of tax payable on 15th March penalty of simple interest @ 1% per month
is charged on the amount shortfall until the tax is paid
For
Corporate assessee –
Simple interest @ of 1% is charged on the
deficit amount for a term of 3 months if you have failed to pay advance tax or
if advance tax paid is less than tax due as per the above slab. For the 4th and
final installment if the advance tax paid is less than 90% of tax payable
simple interest @ 1% per month is charged on the deficit from 1st April until
the tax is fully paid.
How
to pay advance tax?
Advance tax can be paid online through the
website of income tax department. It can also be paid by filling challan, ITNS
280 and submitting it at designated branches of specified banks. SBI,
Corporation bank and ICICI are some of the banks that accept advance tax
payments.
What
if Advance tax paid is more than required?
If the amount paid as advance tax is higher
than the total tax liability, the assessee will receive the excess amount as a
refund. Interest @6% p.a will be paid by the income tax department to the
assessee on the excess amount if the excess amount is more than 10% of tax
liability.
Download free Advance Tax or another Calculators (click here)