Penalties U/S 234C If You Didn't Pay Advance Tax by 15th March

The last date for furnishing the advance tax is near. Any individual who estimates the tax liability for one year is Rs 10k or exceeding it is needed to pay the advance tax. The advance tax is to be filed in 4 installments in the fiscal year itself. The last date for filing the 4th installment of the advance tax is 15 march. Let us know what is the method to estimate the advance tax and the penalties for the case where one does not have paid the tax within the time.

Penalties After the Last Date of Advance Tax

“A taxpayer should first estimate his current income and income-tax thereon shall be calculated at the rates in force in the financial year. Thereafter the estimated tax deducted or collected at source will be deducted and the balance tax payable will be used to compute the advance tax liability," told Vivek Jalan, partner, Tax Connect Advisory Services LLP, a Chartered accountancy firm.

The assessee will be liable towards the interest beneath section 234B and 234C for default in filing of the advance tax. The interest beneath section 234B is levied if the assessee has not deposited the advance tax or if the advance tax has been deposited is lower than 90% of the total tax liability. The assessee will be liable for the interest beneath section 234B at 1% per month or the part of the month from April till the payment date of the tax.

The interest beneath section 234C is levied if the advance tax has been filed in any installments is lower than the mentioned percent of installment amount as follows:

The assessee will be entitled to the interest beneath section 234C at 1% per month or part of the month for the duration of default. The duration of the default is 3 months for the case of the shortfall in the payment 1st, 2nd, and 3rd installment and for 1 month in case of shortfall of end installment. Advance tax obligations are not applied to the resident senior citizens whose age is more than 60 years who do not have income from the business or profession.

“Section 234B is not applicable if the assessee has paid 90% or more advance tax. If any change in income due to processing of return under section 143(1) or assessment, the tax as per u/s 143(1)/assessed tax shall be taken instead of tax as per return of income (ROI) for the calculation of interest under 234B. Hence it is important to estimate the income for the year and advance tax with precision," directed that Jalan.

Comments

Check Summary of 2023 MCA Amnesty Scheme for LLP e-Forms

The discussion shall take place for "Latest Amnesty Scheme introduced by MCA in relation to Limited Liability Partnership". A General Circular No 08/2023 Dated: 23rd August 2023- Subject- Condonation of Delay in filing of Form-3, Form 4, Form 11 u/s 68 of LLP Act, 2008 is been issued by the MCA. MCA has acknowledged that they've received numerous complaints regarding technical glitches on their website and discrepancies in the master data. These issues have prevented Limited Liability Partnerships (LLPs) from submitting the LLP-3, LLP-4, and LLP-11. In order to facilitate a more business-friendly environment, the MCA is utilizing its authority under Section 67 of the LLP Act, 2008. They have decided to grant a one-time relaxation in additional fees and any related penalties for delayed filing of the aforementioned three forms, as elaborated in this article. However, one aspect of this initiative raises some confusion. Why hasn't the MCA included Form LLP 8 in this a

All Special Features of Gen I-T Software with Downloading Steps

Gen IT is one of the income tax software created by professionals from SAG Infotech Pvt. Ltd. This software helps to compute Income Tax, Interest Calculations, Advance and Self Assessment Tax. The software is created with high quality-perfection to prepare returns. It also provides e-filing to upload returns with the help of the software. This software is proficient in calculating Income Tax, Advance, Interest Calculations, and Self Assessment Tax. The quality of the software is very high as the returns are prepared by it. The software provides the facility to file and upload returns. Also, there are simple steps to download the free download Gen IT software for the trial version. To complete the processes, the Gen Income Tax returns filing software has 2 different sections which include - Client Manager, Income Tax, Billing, AIR, Calculator, Backup/Restore, Password and Printer Settings, Bulk SMS/E-Mail and Help. These operations are explained briefly below- 1. Client Mana

All About Advance Tax Payment Rule Under IT Act, 1961

A tax expert answers the question- ‘the requirements of advance tax provisions under the Income-tax Act 1961’. Advance tax, as the name itself indicates that the tax paid by individuals in the financial year when the corresponding income is earned, rather than in the assessment year when the income is assessed for taxation purposes. This payment is calculated based on the consolidated income earned and expected to be earned from various sources, such as salary, rent, interest, and more. It takes into account applicable deductions, exemptions, and credits for taxes deducted at source (TDS) or taxes collected at source (TCS). According to section 208 of the Income Tax Act, 1961, individuals whose estimated tax liability for the year amounts to Rs. 10,000 or more are required to pay advance tax. However, senior citizens aged 60 years or above who are residents and do not earn any income from business or profession are exempt from paying advance tax. Typically, advance tax payments are ma

SAG Infotech: Need Tax Software (Call 0141-4072000)

Search This Blog