Advance Tax

This query is : Resolved

CA Suresh Choudhary (Querist)
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03 February 2009 If assessee had not paid the advance tax in the AY-2008-09 but paid the tax liability along with interest u/s 234B&C.

Now the assessee has been asked to pay advance tax for the AY-2009-10 by the ITO.

Can they ask for the same if we are ready to pay interest & 234 B& C.

CA. B.SRINIVASULU

CA. B.SRINIVASULU (Expert)
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03 February 2009 Yes, the assessing officer is absolutely correct. Based on the earlier assessements he can demand for current year advance tax.

The reason is simple when you are in earning stage they want to collect their amount.

You are willing to pay interest. Assume suddenly something happend and the comapny has faced financial problem drastically at that time the deparment cannot recover very easily.