Advance Income-tax for Financial Year (previous year) 2009-10, i.e. A.Y. 2010-2011
Form A.Y. 2010-11 assessee how have estimated income-tax payable of more then Rs.10,000/- are required to pay advance tax. Previously this limit was Rs.5,000,/-
Due dates of payment of advance tax - Advance tax is payable as follows :
| In the case of a corporate assessee | In the case of a non-corporate assessee | |
| On or before June 15 of the previous year | Up to 15 per cent of advance tax payable | Nil |
| On or before September 15 of the previous year | Up to 45 per cent of advance tax payable | Up to 30 per cent of advance tax payable |
| On or before December 15 of the previous year | Up to 75 per cent of advance tax payable | Up to 60 per cent of advance tax payable |
| On or before March 15 of the previous year. | Up to 100 per cent of advance tax payable. | Up to 100 per cent of advance tax payable. |
Any amount paid as advance tax before March 31 shall also be treated as advance tax paid during the financial year.
If the due date of any installment of advance tax falls on bank holiday, the assessee can make the payment on the next immediately following working day, and in such cases, the mandatory interest leviable under sections 234B and 234C would not be charged.
Estimation of Income-tax for payment of Advance Tax
To estimate the amount of advance tax payable, the assessee/tax payer must first calculate his current income. He must estimate his income from all source during the financial year. From this he must deduct the eligible deduction. On his current income he must calculate income tax at rates in force for the current year/financial year. From this amount of tax he must reduce the TDS/TCS (with-holding taxes). The balance amount is payable by him as advance tax during the financial year. He has to pay the amount in proportions as mentioned above. The assesee can revise his estimate of income and tax payable after paying one or more installation of tax. In this case he will adjust this advance tax payable in balance installments remaining to be paid.
Interest for Default in Payment of Advance Tax
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