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Advance tax

Shivam Agarwal (Bareilly) (28 Points)

11 December 2015

If Advance Tax is deposited on 16th Dec 2015, effect of late depositing advance tax

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5 Replies

Stranger (.) (5531 Points)
Replied 11 December 2015

The assessee will be liable for penal interest u/s-234C as follows:

In case of corporate assessee

75% of Amount* less tax already deposited before December 15, 2015 × 1% × 3

In case of non-corporate assessee

60% of Amount* less tax already deposited before December 15, 2015 × 1% × 3

* Amount = Tax on total income less TDS less relief u/s 90 or 91 less tax credit u/s 115JD

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Udgam Koomar (Tax Technologist) (1949 Points)
Replied 11 December 2015

The interest part if found eligible

Bhanu Prakash Rao (Think Beyond Stay Ahead...!) (1064 Points)
Replied 11 December 2015

The same will be considered as advance tax for next tranche of payment i.e 15th March.

PALLAVI (Student CA Final ) (42 Points)
Replied 12 December 2015

At the time of filing of your income tax return, if the total of advance taxes paid (on or before 15th sep, 15th dec & 15th mar) is less than 90% of ur total tax liability than there would be interest leviable on late advance tax payment.

Interest @ 1% per month would be charged on late advance tax paid.

Stranger (.) (5531 Points)
Replied 12 December 2015

Agreed with Miss Pallavi but partly, as the interest u/s-234B also to be levied when advance tax has not been paid at all or when advance tax paid is less than 90% of "assessed tax" & not of "total tax liability" & interest will be calculated from 1st April of A.Y to date of determination of total income u/s-143(1) or upto the date of regular assessment u/s- 143(3) @ 1% p.m. on amount equal to assessed tax (if no advance tax has been paid) or on the amount by which advance tax paid falls short of assessed tax...