C: ADVANCE TAX
Liability to pay advance income-tax
204. (1) Every assessee shall be liable to pay advance income-tax during any financial year in respect of his total income of the financial year, if the amount of advance income-tax payable exceeds ten thousand rupees.
(2) The amount of advance income-tax payable by an assessee in the financial year shall be computed in the following manner:
(a) the assessee shall first estimate his total income and calculate income-tax thereon at the rates in force in the financial year;
(b) the income-tax so calculated shall be reduced by -
(i) the amount of income-tax which would be deductible or collectible at source during the financial year from any income which is taken into account in estimating the total income;
(ii) the amount of credit under section 206, allowed to be set off in the financial year; and
(c) the balance amount of income-tax shall be the advance income-tax payable.
(3) The advance income-tax, in the case of a company, shall be payable in four instalments during the financial year on or before the dates specified in Column 1 of Table 7 and shall be equal to the amount specified in corresponding entry in Column 2 of the Table;
TABLE - 7
|
Date of instalment |
Amount payable |
|
(1) |
(2) |
|
On or before the 15th June |
Not less than fifteen per cent. of the advance income-tax. |
|
On or before the 15th September |
Not less than forty-five per cent. of the advance income-tax, as reduced by the amount, if any, paid in the earlier instalment. |
|
On or before the 15th December |
Not less than seventy-five per cent. of the advance income-tax as reduced by the amount or amounts, if any, paid in the earlier instalment or instalments. |
|
On or before the 15th March |
The whole amount of the advance income-tax as reduced by the amount or amounts, if any, paid in the earlier instalment or instalments. |
(4) However, the advance income-tax, in case of any other person, shall be payable in three instalments, during the financial year on or before the dates specified in Column 1 of Table 8 and shall be equal to the amount specified in corresponding entry in Column 2 of the Table.
TABLE - 8
|
Date of instalment |
Amount payable |
|
(1) |
(2) |
|
On or before the 15th September |
Not less than thirty per cent. of the advance income-tax. |
|
On or before the 15th December |
Not less than sixty per cent of the advance income-tax, as reduced by the amount, if any, paid in the earlier instalment. |
|
On or before the 15th March |
The whole amount of the advance income-tax as reduced by the amount or amounts, if any,paid in the earlier instalment or instalments. |
(5) The assessee may increase or reduce the advance income-tax payable in the remaining instalment to accord with the estimate of his total income and make payment of such advance income-tax in the remaining instalment accordingly.
(6) Any amount of advance income-tax paid after 15th March but before the expiry of the financial year shall be treated as advance income-tax paid during the financial year.
