Why does a Sole Proprietor need to pay Income Tax in the form of advance tax, four times during the year based on estimated income?
Because how someone can conclude their estimated future income ? And if I don't earn any profit for a particular quarter then from where a person can give income tax in advance (Logically how this is possible).
Does this mean that when I was doing service in a company as an employee then the company was filing my TDS 4 times a year in advance? because employees of a company and a proprietor both use the same PAN number and are treated as individuals.
I am just confirming that. In both cases (as an employee of a company or a proprietor )
The IT return is filed One time before July but Income Taxes are paid 4 times in a year based on estimated income ? Correct me if my understanding is wrong.
If suppose I am paying 20000 for cumming quarter in advance and when the quarter comes I earn more profit so for than estimated income than what ?
CAclubindia
