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PREPAID TAX

19 June 2022

Advance tax

if the total income exceedsRs 10,000 we should have to liable to pay the advance tax...for example (advance taxes are paid the quarterly basis )

My query:
1. Advance tax calculation for April to March or only three quarter month basis??

2. Above the age of 60 ( exempted) person category??

3. could you please explain me the advance tax due date filing with example

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15 Replies

CA Rashmi Gandhi (Chartered Accountant) (86313 Points)
Replied 19 June 2022

The first thiing i want to clear is that advance tax is required if your tax is more than 10000 not your income.

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MPR Sanjay Kumar (3106 Points)
Replied 19 June 2022

Tax liability mam?

sabyasachi mukherjee (27330 Points)
Replied 19 June 2022

If not paid sec 234 A, 234B, 234C IS APPLICABLE.

MPR Sanjay Kumar (3106 Points)
Replied 19 June 2022

Advance tax calculate for whole year or only quarterly three month basis??

Eswar Reddy S (CFO- at NHTF) (58263 Points)
Replied 19 June 2022

Tax will be estimated for the whole year and payment will be 15th June , 15th December, 15th March as % based on the category of tax payers

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MPR Sanjay Kumar (3106 Points)
Replied 19 June 2022

For instance my total tax 30,000 means for jun month of 15% of 30000

then for 15 the September 45% 30000

for December 15 th 75% of Rs 30000

for finally March 100 % of Rs 30000.

why I stallment basis??

CA Rashmi Gandhi (Chartered Accountant) (86313 Points)
Replied 19 June 2022

Tax liability means amount of tax payable on total income

Eswar Reddy S (CFO- at NHTF) (58263 Points)
Replied 19 June 2022

@ MPR Sanjay Kumar,

Advance Tax will be paid based on estimated income and actual income can be different.

First quarter only estimated and second quarter has actual information to some extent. So that's why % of advance tax is fixed .

4 Like

CA Rashmi Gandhi (Chartered Accountant) (86313 Points)
Replied 19 June 2022

Tax calculation made on yearly. income but you have to paid advance tax on percentage basis

Eswar Reddy S (CFO- at NHTF) (58263 Points)
Replied 19 June 2022

@ MPR Sanjay Kumar,

Why installment basis ?

Suppose you have profits in first quarter and you paid tax and if you incur losses in second quarter then tax calculation can vary.

Considering uncertainty of business and unforseen events , IT Dept implemented instalment system.

Nothing wrong in paying entire advance tax in first quarter itself. But you may loose interest on the excess idle funds lying with IT Dept in the form of advance tax

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CA Rashmi Gandhi (Chartered Accountant) (86313 Points)
Replied 19 June 2022

First you get clear on this concept.