Understanding the procedure of Payment in case of Deferment of Advance Tax
In case of default in payment of installment(s) of advance tax, Section 234C provides for levying interest on the unpaid/short paid amount at the time of filing of the returns.
According to Section 208, every individual whose tax liability for any financial year exceeds Rs. 10,000 shall pay his tax in the form of ‘advance tax’ which is being shown in the table below:
The interest tax is levied in case if any advance tax paid in any installment is less than the required amount/ in case of deferment of different installments. The Interest rate for default in payment of installments of this tax is charged @ 1% per month or a part of the month and the rate is calculated at Simple Interest. For the Corporate Taxpayers, if there is a shortfall in payment of 1st, 2nd and 3rd installments, the interest is levied for 3 months and if there is a shortfall in payment of last installment, then the interest is levied for 1 month. However, for the Non-Corporate Taxpayers, if there is a shortfall in payment of 1st, and 2nd installments, the interest is levied for 3 months and if there is a shortfall in payment of last installment, then the interest is levied for 1 month.
NOTE: If the advance tax which is unpaid due to income earned from winning lotteries, puzzles, etc, then the interest is not levied on such tax amount.
|Status||By 15th June||By 15th September||By 15th December||By 15th March|
|Corporate Taxpayers||Till 15% of Advance Tax||Till 45% of advance tax||Till 75% of advance tax||Till 100% of advance tax|
|Non-Corporate Taxpayers||Nil||Till 30% of advance tax||Till 60% of advance tax||Till 100% of advance tax|
For any help on ITR Filing feel free to consult the tax experts at Taxraahi. You can file ITR yourself via our ITR software or get CA’s help on filing income tax return. You can also use the option of Business Return, and Bulk Return.