A NOTE ON ADVANCE TAX

When to Pay Advance Tax for FY 2022-23?

Payment of Advance Tax

 First Installment- by 15th June every year you have to pay 15% of tax liability.
 Second Installment- by 15th September you have to pay 45% of tax liability.
 Third Installment- by 15th December you have to pay 75% of tax liability.
 The fourth Installment- by 15th March you have to pay 100% of tax liability.

Points To Remember While Paying Advance Tax Installment

While paying advance tax, it is not required that the person must submit an
estimate or statement of income to the liabilities.

While calculating tax liability it is allowed to consider deductions under Chapter

VI-A for the investments to be made by the taxpayer during the year before
calculating advance tax liability. Deductions under Sections 80C, 80D and so on
are included in Chapter VI-A deductions.

After the payment, if there is a change in income then you can update the
revenue of advance tax in the next installments as per the new tax liability
estimate.

One has to pay interest on due taxes if they fail to pay taxes on time.

“Interest under section 234B of the Act shall have to be paid if the total advance
tax paid is less than 90% of the assessed tax or if the entire advance tax has not
been paid. Interest at the rate of 1% per month from the beginning of the
assessment year until the payment thereof shall have to be paid on account of
such default”.

Under section 234B, interest for default in payment of advance tax is levied at 1%
per month or part of a month. The nature of interest is simple interest. In other
words, the taxpayer is liable to pay simple interest at 1% per month or part of a
month for default in payment of advance tax

K Jajodia & Associates

CHARTERED ACCOUNTANTS
8017450944