Advance tax

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

14 March 2011 Sir,

As my boss is out of station,so instead of making the payment of advance tax on 15.03.2011 if we make the payment on or before 31.03.2011, whether we have to make the interest payment

Kindly advice.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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14 March 2011 On or before 31.03.2011 you have not to make any interest payment. The amount which is going to be deposited by you will be treated as tax payment.

The liability for deferment of advance tax U/s 234C will be calculated at the time of
filing of the return, when the actual tax liability will be ascertained.

For the period from 16.03.2011 to 31.03.2011 interest payable will be @ 1%
of the short payment on a/c of advance tax liability.