Advance tax payment due dates after amendment of Income Tax Act

All income tax assessees are required to pay their income tax liability in different installments in the form of advance tax. Provision for calculation of advance tax liability has been amended w.e.f. Financial Year 2016-17. Calculation of Advance tax liability as per section 211 of Income Tax Act, 1961 after amendment of the act is as under:

 

 

Due dates for payment of advance tax by Individual and corporate assesses other than covered under Section 44AD and amount to be paid:

Due Date Advance Tax payable
on or before 15th June 15% of Tax yearly liability
On or before 15th September 45% of Tax yearly liability
On or before 15th December 75% of Tax yearly liability
On or before 15th March 100% of Tax yearly liability

 

Tax Payers who opted for Presumptive Taxation Scheme u/s 44AD(1) and 44ADA(1)

Due Date Advance Tax payable
on or before 15th June 15% of Tax yearly liability

 

Advance Tax liability calculation for Financial Year till 2015-16.

Due Date Corporate Tax Payers Individual Tax Payers
on or before 15th June 15% of Tax yearly liability -
On or before 15th September 45% of Tax yearly liability 30% of tax liability
On or before 15th December 75% of Tax yearly liability 60% of tax liability
On or before 15th March 100% of Tax yearly liability 100% of tax liability

Income Tax Sections deals with Advance Tax

Person liable to pay advance tax - Section 208 of Income tax Act, 1961

As per section 208, every person whose estimated tax liability for the year is Rs. 10,000
or more, shall be liable to pay tax in advance, in the form of "advance tax".

 

Person not liable to pay Advance Tax

- Person whose estimated tax liability for the year is less than Rs. 10,000
- A resident senior citizen (i.e., an individual of the age of 60 years or above during the relevant financial year) not having any income from business or profession is not liable to pay advance tax.

 

 

 

Computation and payment of Advance Tax - Section 209 of Income tax Act, 1961

Section 209 has provision regarding computation and payment of Advance Tax. Provision under section 209 is as under:

"209A. (1) Every person shall, in each financial year, [on or] before the date on which the first instalment, or where he has not previously been assessed by way of regular assessment under this Act, [on or] before the date on which the last instalment, of advance tax is due in his case under sub-section (1) of section 211, if his current income is likely to exceed the amount specified in sub-section (2) of section 208, send to the Income-tax Officer-

(a) where he has been previously assessed by way of regular assessment under this Act, a statement of advance tax payable by him computed in the manner laid down in clause (a) or, as the case may be, sub-clause (i) of clause (d) of sub-section (1) of section 209, or

(b) where he has not previously been assessed by way of regular assessment under this Act, an estimate of-

(i) the current income, and

(ii) the advance tax payable by him on the current income calculated in the manner laid down in section 209 ;

and shall pay such amount of advance tax,-

(I) in a case falling under clause (a), as accords with the statement in equal instalments on the dates applicable in his case under section 211 ; and

(II) in a case falling under clause (b), as accords with the estimate in equal instalments on such of the dates applicable in his case as have not expired, or in one sum if only the last of such dates has not expired.]

(2) Where an assessee who is required to send a statement under clause (a) of sub-section (1) estimates [on or before the date] on which the first instalment of advance tax is due in his case under sub-section (1) of section 211 that, by reason of his current income being likely to be less than the income on which advance tax is payable by him under sub-section (1) or for any other reason, the amount of advance tax computed in the manner laid down in section 209 on the current income would be less than the amount of advance tax payable by him under sub-section (1), he may send to the Income-tax Officer, in lieu of such statement, an estimate of-

(i) the current income, and

(ii) the advance tax payable by him on the current income calculated in the manner laid down in section 209 ;

and shall pay such amount of advance tax as accords with his estimate in equal instalments on the dates applicable in his case under section 211.

(3) Where an assessee who has sent a statement under clause (a) of sub-section (1) estimates 5[on or before the date on which the last instalment] of advance tax is due in his case that, by reason of his current income being likely to be less than the income on which advance tax is payable by him under sub-section (1) or for any other reason, the amount of advance tax computed in the manner laid down in section 209 on the current income would be less than the amount of advance tax payable by him under sub-section (1), he may, at his option, send to the Income-tax Officer an estimate of -

(i) the current income, and

(ii) the advance tax payable by him on the current income calculated in the manner laid down in section 209 ;

and shall pay such amount of advance tax as accords with his estimate in equal instalments on such of the dates applicable in his case under section 211 as have not expired, or in one sum if only the last of such dates has not expired.

(4) In the case of any assessee who is liable to pay advance tax under subsection (1) or sub-section (2) or, as the case may be, sub-section (3), if, by reason of the current income being likely to be greater than the income on which the advance tax so payable by him has been computed or for any other reason, the amount of advance tax computed in the manner laid down in section 209 on the current income (which shall be estimated by the assessee) exceeds the amount of advance tax so payable by him by more than 331/3 per cent of the latter amount, he shall, 1[on or before the date] on which the last instalment of advance tax is payable by him, send to the Income-tax Officer an estimate of-

(i) the current income, and

(ii) the advance tax payable by him on the current income calculated in the manner laid down in section 209 ;

and shall pay such amount of advance tax as accords with his estimate on such of the dates applicable in his case under section 211 as have not expired, by instalments which may be revised according to sub-section (5):

Provided that in a case where the Commissioner is satisfied that, having regard to the nature of the business carried on by the assessee and the date of expiry of the previous year in respect of such business, it will be difficult for the assessee to furnish the estimate required to be furnished by him in accordance with the provisions of this sub-section [on or] before the date on which the last instalment of advance tax is due in his case, he may, if the assessee pays the advance tax which he is liable to pay under subsection (1) or sub-section (2) or, as the case may be, sub-section (3) 2[on or] before such date, extend the date for furnishing such estimate up to a period of thirty days immediately following the last date of the previous year in respect of that business and, where the date is so extended, the assessee shall pay, on or before the date as so extended, the amount by which the advance tax already paid by him falls short of the advance tax payable in accordance with his estimate.

Provided further that in the case of an assessee, being a company, the provisions of this sub-section shall have effect as if for the figures and words "331/3 per cent", the figures and words "20 per cent" had been substituted.

(5) The assessee may send a revised estimate of the advance tax* payable by him [on or] before any one of the dates specified in section 211 and adjust any excess or deficiency in respect of any instalment already paid in a subsequent instalment or in subsequent instalments.

*(6) Every statement or estimate under this section shall be sent in the prescribed form and verified in the prescribed manner.

Explanation: For the purposes of this section and section 212, "current income," in relation to the advance tax payable by an assessee during any financial year, means the total income of the assessee [exclusive of capital gains and income referred to in sub-clause (ix) of clause (24) of section 2, if any] of the period which would be the previous year for the assessment year immediately following that financial year."

 

 

Payment of advance tax in pursuance to the order of Assessing officer - Section 210 of Income tax Act, 1961
If taxpayer fails to pay advance tax or paid is lower than the required amount and he has already been assessed by way of regular assessment in respect of the total income of any previous year, then the Assessing Officer may pass an order under section 210(3) requiring him to pay advance tax on his current year's income (specifying the amount of instalments in which tax should be paid). Such an order may be passed during the financial year, but not later than the last day of February.


On receipt of the notice from the Assessing Officer to pay advance tax, if the taxpayer's estimate is lower than the estimate of the Assessing Officer, then the taxpayer can submit his own estimate of current income/advance tax and pay tax accordingly. In such a case, he has to send intimation in Form No. 28A to the Assessing Officer.

Alternatively, if the advance tax on current income as per own estimate of the taxpayer is likely to be higher than the amount estimated by the Assessing Officer, the taxpayer shall pay such higher amount as advance tax in accordance with his own calculation. In such a case, no intimation to the Assessing Officer is required.

The Assessing Officer can revise his order issued to the taxpayer to pay advance tax (as discussed above) under section 210(4). Such revision can be done, if subsequent to the passing of an order to pay advance tax but before 1st March of the relevant financial year a return of income in respect of any later year has been furnished by the taxpayer or any assessment for any later year has been completed at a higher figure. On receipt of such order, the procedure to be followed by the taxpayer will be same as discussed earlier.

 

Calculation of Advance Tax Liability - Section 211 of Income Tax Act, 1961

Amended Provision under section 211 of Income Tax is as under:

"Amendment of section 211

15. In section 211 of the Income-tax Act,-

(a) for sub-section (1), the following sub-section shall be substituted, namely:-

'(1) Subject to the provisions of this section and of section 212, advance tax shall be payable in three equal instalments on the following dates during the financial year, namely:-

(i) the 15th day of June, the 15th day of September and the 15th day of December, in the case of an assessee whose total income to the extent of 75 per cent. thereof or more is derived from a source or sources for which the previous year (relevant to the assessment year next following the financial year aforesaid) ends on or before the 31st day of December;

(ii) the 15th day of September, the 15th day of December and the 15th day of March, in any other case:

Provided that in respect of any class of assessees referred to in clause (i), the Board may, having regard to the nature of dealings in the business carried on by such assessees, the method of accounting followed by them and other relevant factors, authorise, by notification in the Official Gazette and subject to such conditions as may be specified therein, the payment of the last instalment of 4he advance tax on the 15th day of March during the financial year instead of on the 15th day of December.

Explanation.-In this sub-section, 'total income" means,-

(a) in a case Where advance tax is paid by the assessee in accordance with an order of the Income-tax Officer under section 210, the total income with reference to which the advance tax payable has been calculated in such order;

(b) in a case where the advance tax is paid in accordance with an estimate made by the assessee under section 212, the total income with reference to which the advance tax is so estimated,

as reduced, in either case, by the capital gains, if any, included therein.';

(b) in sub-section (2), for the figures, letters and words "1st day of March" and "1st day of December", the figures, letters and words "15th day of March" and "15th day of December" shall, respectively, be substituted."