INTRODUCTION:

 It is provided that an assessee has to pay tax in

advance in a particular financial year against his
probable liability to tax in the assessment year
immediately following that financial year. Sec(207)
 Advance tax is one of the mode of collection of
tax similar to tax deduction at sources.
 If your total tax liability is Rs 10,000 or more in
a financial year you have to pay advance tax. (sec208)
PROVISION RELATING TO ADVANCE TAX:
 Liability of advance tax (Sec207&208)
 Exemption from payment of advance tax
 Computation of advance tax (Sec209&210)
 Installments of advance tax and due dates
(Sec218)
 Assessee deemed to be in default (Sec211)
 Credit for advance tax (Sec219)
INTEREST PAYABLE BY ASSESSEE:

 Defaults in furnishing return of income

(Sec234A)

 Defaults in payment of advance tax

(Sec 234B)

 Deferment of advance tax (Sec234C)

EXEMPTION FROM PAYMENT OF ADVANCE
TAX:

 Senior citizens, who are 60 years or older, and

do not run a business, are exempt from paying
advance tax.
An assessee being on individual, HUF, Firm.
 Advance tax need not paid in case less than Rs.
10,000.
COMPUTATION OF ADVANCE TAX:

Advance tax may be computed

 Based on estimation of income by assesee
 Based on order from the assessing officer .
 PARTICULARS AMOUNT AMOUNT

Estimate of taxable income for the year XXX

Tax on the estimated income XXX

XXX
Less: Rebate u/s sec 87A (if applicable)
XXX
Income tax liability

Add: Surcharge (if applicable) XXX

Total Income tax liability XXX

Add: Education cess XXX

XXX
Total tax payable

Less: Relief if any u/s 89,90,90A and 91 XXX

Credit if allowable u/s 115JAA or 115JD XXX
Tax deductable or collectable at source XXX XXX

Net tax payable XXX

INSTALLMENT OF ADVANCE TAX:

I Installments of advance tax-Section 211

COMPANY ASSESSEE :
15% 15 June
45%- Paid 15 September
75% - Paid 15 December
Whole amount 15 March Amount paid by way of
Advance tax on or before 31st March shall be treated as
Advance Tax.
NON COMPANY ASSESSEE

15th June not applicable

30% 15 September

60% - paid 15 December

Whole amount 15 March Amount paid by way if

advance tax on or before 31st March shall be treated as
advance tax
ASSESSEE DEEMED TO BE A DEFAULT :
 Penalty under section 221 may be levied
equivalent to the amount of tax in arrears.

CREDIT FOR ADVANCE TAX:

 Payment of tax in respect to the income
assessable in the relevant assessment year and credit
thereof shall be given to the assessee in the regular
assessment.
INTEREST PAYABLE BY THE ASSESSEE:
Section234A : assessee default to furnish return of
income shall be liable to pay simple interest 1% for
every month or part of the month.
 Section234B: 90% of the tax not paid by the
assessee shall be liable to pay simple interest 1% for
per month.
Section234C :assessee deferment of payment
advance tax not paid shall be liable to pay simple