20 January 2011
hello, i have started a bakery business on 23 sept,2010.can one explain me if im liable for advance tax in the very first year as i have no projections of my profitability.
can the it dept. penalize me for nonpayment of taxes in the first year.
20 January 2011
A person is liable to pay advance tax even in first year of operation. If you are liable to pay advance tax but you did not paid you have to pay interest u/s 234B & C of the I.T.Act
20 January 2011
Liable to pay advance tax if the tax payable on the estimated total income is 10,000/- or more. If not paid , interest liability arises under section 234B and 234C of the Income tax Act,1961. Further, the assessee shall be treated as an "assessee in default" and penalty proceedings under section 221(1) can be initiated by the assessing officer.
CAclubindia
