C.—Advance Tax
Liability to pay advance tax
205. (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, namely:—
(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 207, 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 case of any person other than a company, shall be payable in three instalments during the financial year on or before the dates specified in column (2) of the Table given below and shall be equal to the amount specified in corresponding entry in column (3) of the said Table:
TABLE
|
Serial
Number |
Date of instalment
in the financial year |
Amount payable |
|
(1) |
(2) |
(3) |
|
1. |
On or before the 15th September. |
Not less than thirty per cent. of the advance income-tax. |
|
2. |
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. |
|
3. |
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) 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 (2) of the Table given below and shall be equal to the amount specified in corresponding entry in column (3) of the said Table:
TABLE
|
Serial Number |
Date of instalment in the financial year |
Amount payable |
|
(1) |
(2) |
(3) |
|
1.
|
On or before the 15th June.
|
Not less than fifteen per cent. of the advance income-tax.
|
|
2. |
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. |
|
3.
|
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.
|
|
4.
|
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) Any amount of advance income-tax paid after the 15th March but before the expiry of the financial year shall be treated as advance income-tax paid during the financial year.
(6) Every person who is liable to pay advance income-tax shall, of his own volition, pay the appropriate percentage of the advance income-tax on or before the due dates.
(7) The assessee may increase or reduce the payment of remaining instalments of the advance income-tax in accordance with his estimation of the total income.
(8) Where in the opinion of the Assessing Officer, any person is liable to pay advance income-tax, he may by an order in writing—
(a) require such person to pay advance income-tax calculated in such manner as may be prescribed; and
(b) issue to such person a notice of demand under section 162 specifying the instalments in which such tax is to be paid.
(9) The person who has been served with an order under sub-section (8)—
(a) may file an estimation, in such form as may be prescribed, to the Assessing Officer, if in his estimation, the advance income-tax payable by him is lower than the amount specified in the said order; and
(b) pay the advance income-tax in accordance with his estimation on or before the due dates specified in this section.
(10) No order under sub-section (8) shall be passed after the last day of February of
the financial year for which the advance tax is due. D.—Tax relief in respect of arrears or advance receipts
