Advance Tax Due Date: Advance Tax Liability for FY 2018-19 | AY 2019-20
Question : What is advance tax ?
Answer : As the name suggests, advance tax means paying a part of your taxes in advance before the end of the financial year. Also called ‘pay-as-you-earn’ tax. If your tax liability is more than Rs. 10,000 in a financial year then you have to pay tax in advance and these tax payments have to be made in installments as per due dates provided by the income tax department. It should be paid in the year in which the income is received.
Question : Is there any change in provisions Advance Tax in the Finance Act 2018?
Answer : There is no change in provisions of Advance Tax in the Finance Act 2018. Therefore the Advance Tax provisions related to A.Y. 2018-19 will continue applicable on A. Y. 2019-20.
Following are key points related to Advance Tax Liability for the A. Y. 2019-20:
- Earlier upto A.Y. 2016-17 only corporate assessee were required to make payment of advance tax in four installments. After the amendment in section 211(1) of Finance Act 2016 all assessee except assessee covered u/s 44AD are treated at par for Advance Tax provisions. And advance tax will be paid in four installments of 15%, 45%, 75% and 100% of tax payable on the current income by 15th June, 15thSeptember, 15th December and 15th March, respectively in case of all assesses.
- For assessees covered u/s 44AD of the I.T. Act 1961 have to pay entire amount only in one installment on or before the 15th March of the financial year consequent upon raising of the turnover limit from Rs.1 crore to Rs. 2 crore.
- Similarly assessees covered u/s 44ADA (Professionals referred to in sub-section (1) of section 44AA such as legal, medical, engineering or architectural profession or the profession of accountancy or technical consultancy or interior decoration or any other profession as is notified by the Board in the Official Gazette & whose total gross receipts does not exceed fifty lakh rupees in a previous year) of the I.T. Act 1961 have to pay entire amount only in one installment on or before the 15th March.
- Advance tax is payable only when the amount of such tax payable is Rs. 10,000 or more calculated considering all income earned during the financial year.
Question : What are the due dates and amount of advance tax payment paid in India?
Answer : Following is chart showing Advance Tax due dates and Liability for the F.Y 2018-19 | A.Y. 2019-20:
Below advance tax liability is For both individual and corporate taxpayers.
|Due Date||Advance Tax Payable ( For Assesse other than covered u/s 44AD)|
|On or before 15th June||15% of advance tax|
|On or before 15th September||45% of advance tax|
|On or before 15th December||75% of advance tax|
|On or before 15th March||100% of advance tax|
For taxpayers who have opted for Presumptive Taxation Scheme – Business Income ( Assesse covered u/s 44AD(1) & 44ADA(1) )
|Due Date||Advance Tax Payable|
|Before 31st March 2019||100% of advance tax|
Question : What are the Statutory Provisions for payment of Advance Tax in India?
Answer : Following are the sections of the Income Tax Act, 1961 which deal with the provisions of advance tax:
- Section 208: Conditions of liability to pay advance tax
- Section 209: Computation of advance tax
- Section 210: Payment of advance tax by the assessee of his own accord or in pursuance of order of Assessing Officer
- Section 211: and due dates
Question : When Advance tax is payable? Who are liable to pay advance tax?
Answer : As per the provisions of section 208, Advance tax is payable only when the amount of such tax payable is Rs. 10,000 or more calculated considering all income earned during the financial year. However, in following cases advance tax need not be deposited:
- Resident individuals who are over 60 years of age and do not have income chargeable under the head ‘Profits and Gains of Business or Profession’ are not required to pay advance tax.
- TDS is to be reduced from total tax liability of assessee and then specified percentage be calculated of advance tax.
- Assesses covered u/s 44AD/44ADA of the IT Act,1961 can deposit his entire liability of advance tax in one installment upto 15th March 2019.
- For Individuals with salary as sole source of income, advance tax would be taken care by the TDS deducted by the employer at the time of payment of salaries as reflected in Form 16 and thus there would hardly be any advance tax payable.
Advance Tax Liability for the A.Y. 2019-20 | Advance Tax Liability for the F.Y. 2018-19, Advance Tax Liability for the F.Y 2018-19 | A.Y. 2019-20
Question: Advance tax liability and due date for F.Y 2014-15 | A.Y 2015-16 and F.Y 2015-16 | A.Y 2016-17
|Due Date||For corporate taxpayers||For individual taxpayers|
|On or before 15th June||15% of advance tax||–|
|On or before 15th September||45% of advance tax||30% of advance tax|
|On or before 15th December||75% of advance tax||60% of advance tax|
|On or before 15th March||100% of advance tax||100% of advance tax|
- Any amount paid by way of advance tax on or before 31st March shall also be treated as advance tax paid during financial year ending on that day.
- Deduction under Chapter VIA is allowable while computing liability of advance tax.
- Advance tax is also applicable on both Non-Resident Indian (NRI) or a Non Resident if they have any income accrue during the year in India.
Question: What is the mode of payment of Advance Tax?
Answer: Advance Tax can be deposited through cash, cheque and electronic mode (Debit Card/Credit Card). The challan specified for advance tax is Challan No./ITNS 280. All designated branches of banks which are empanelled with the Income Tax Department accept advance tax payment. Assessee can pay Advance Tax Online through Challan No./ITNS 280 from TIN-NSDL website or can fill up this form of Challan No./ITNS 280.
Question: How can one verify the status of his advance tax deposited and other tax credited to his account?
Answer: The assessee can verify status of his Advance Tax deposited through following links:
- Form No.26 AS: The credit of tax deposited (TDS) would be reflected in Form 26AS within one week of making the payment.
- NSDL e-Governance:Challan Status Inquiry can be made through OLTAS Application (NSDL) by visiting https://tin.tin.nsdl.com/oltas/index.html.
Question: What is meant by self-assessment tax?
Answer: Self Assessment tax means any balance tax (residual tax) paid by the assessee on the assessed income after taking into account all the installments of advance tax paid & TDS before filing the Return of income.
Question: How to Compute Advance Tax Liability?
Answer: The Computation of Tax Liability for the determine Advance Tax is given in below table:
|Income from salary||XXX|
|Income from house property||XXX|
|Profits and gains of business or profession||XXX|
|Income from other sources||XXX|
|Gross Total Income||XXX|
|Less : Deductions under Chapter VI-A||(XXX)|
|Total Taxable Income||XXX|
|Tax on total income at applicable rates||XXX|
|Less : Rebate under section 87A||(XXX)|
|Tax Liability After Rebate||XXX|
|Tax Liability After Surcharge||XXX|
|Add: Education cess @ 3%||XXX|
|Tax liability for the year||XXX|
|Advance Tax||(Above Tax) x (specified percentage u/s 211)|
Question: What are the penal provisions attracted, if advance tax is not paid/ paid less or is not paid within prescribed time?
Answer: If the Income Tax is not payable as per the provisions , Interest is liable to be paid for late payment of tax as follows:
1. Interest u/s 234C – Interest @ 1% p.m. for a period of 3 months, will be payable for every deferment, except for the last installment of 15th March where it will be 1% for one month is payable if the tax is not paid as per the due dates i.e. for Deferment in Installments of Advance Tax
2. Interest u/s 234B – Interest @ 1%p.m. from 1st day of assessment year upto date of deposit tax & interest is payable if 90% of the assessed tax is not paid or is short paid before the end of the financial year i.e. for Default in Payment of Advance Tax.
Question: Can Income tax department issue notice to assessee for payment of Advance Tax?
Answer: Yes. Assessing Officer may pass an order u/s 210(3) of the Income Tax Act 1961 or amended order u/s 210(4) and issue a notice of demand u/s 156 requiring assessee to pay advance tax.
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