13 March 2014
My company is liable for audit u/s 44AB and paying advance tax for this quarter first time only.
I've some questions, please answer asap
1) Is payment in electronically form compulsory?
2) In what name cheque should be prepare?
3) As I mentioned above for this A.Y. 2014-15 company is paying advance tax first time only, is interest liability created? and with this advance tax am I to pay interest separately?
13 March 2014
According to the CBDT guidelines the assessee who are liable for tax audit u/s 44AB must and should be required to pay their tax through online(electronically).
If the company having internet banking facility then tax can be pay from the account of the company, in case it doesn't have then tax can be pay from any of the other account holders who has internet banking facility or the company has account in AXIS Bank then through AXIS bank you can pay tax(because of Axis bank providing e-tax payment facility) by drawing a cheque in the name of "YOUR SELF" for payment of tax for PAN No:
Now(means at the time of payment of advance tax you need not to calculate or pay interest liability) the computation of interest liability shall be done at the time of filing of return of income(because of interest liability shall be depending on the amount of total income tax payable)
So now you just pay tax amount as Advance tax for how much amount you want to pay now.
13 March 2014
Yes, RTGS/NEFT is called as online(electronically) transaction but for the purpose of tax payment we can use RTGS/NEFT there is separate option for payment of tax which is works as RTGS/NEFT but we can't say it is RTGS/NEFT payment.
14 March 2014
If you paying tax through internet banking then hard copy of Form 280 not required, at the below link you can pay tax through interest net banking facility
by selecting the form no which is applicable to your for payment of tax then it provides you soft copy of tax payment challan.
In case if you paying tax through Axix Bank then Axix bank has their own format of tax challan, so go to the bank and ask them and get challan and fill it and enclose the cheque and submit to them, they will give you tax paid receipt with the details of payment.
24 March 2014
Sir, once again I'm here with one more question.
My HOD paid advance tax of Rs. 50 lakhs threw a/c payee bank cheque in the name of "IDBI Income Tax" and same has been cleared in bank. How it possible, while company is liable for compulsory electronic mode of payment?
24 March 2014
It is the responsibility of the assesee to pay taxes through online. Banks doesn't consider the things it just follows the instruction by their client. Your company drawn a cheque for payment of tax it means your assessee instructed the bank pay tax so bank has to just follow the instruction of the client and it doesn't object you.
CBDT saying pay tax online, but not the bank says the same, so if you fill challana for tax payment and submitted to bank along with cheque/cash for tax amount then it just pay and issue a challana. So while in the case of scrutiny if any then AO shall check and considers the facts and object the payment. so it is not the duty of bank and thus it is possible.
24 March 2014
It depending on the Assessing officer, because of some of the officer may consider it serious one as committed mistake and some may not consider it.
As per my view 99% there is no problem for another mode of payment, because of CBDT has instructed for payment of tax through online only but it doesn't indicated for any penalty or punishment for failure to this, so due to this mistake there is no income to the department then generally Assessing officers may not concentrate on this subject. But some are may consider it as violation of law/act/rules etc...
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