13 July 2016
Dear Sirs, The new rule requires individuals also to pay advance tax in 4 installments starting 15 June 2016. Not knowing this, I missed paying it in time. Kindly clarify the following: 1. Can I pay it now or I have to wait till 15 Sep 2016 and pay it along with Second installment in Sept 2016. 2. If I pay it now say on 15 Jul 2016, will penal interest be levied only for 1 month or 3 months i.e. for June, July and Aug. 3. In principal, if adv tax is not paid in time or in full amount in time, is the interest levied for full 3 month period or only for the period of delay and it is levied on full amount that was due or only for the short amount. Any other comments that will be helpful in understanding penal interest issue. Thanks. Regards.
14 July 2016
Dear Mahesh - Even if you pay the installment now in July it is going to be counted under September installment. Interest will be levied for full 3 months on the shortfall i.e. 15% of total tax due (as payable in June installment).
CAclubindia
