Page 394 - DCOM301_INCOME_TAX_LAWS_I

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Unit 14: Advance Tax Planning and Tax Relief

Unit 14: Advance Tax Planning and Tax Relief Notes

CONTENTS
Objectives
Introduction

14.1 Concept of Advance Tax Payment
14.1.1 Who is Liable to Pay Advance Tax?
14.1.2 Computation and Payment of Advance Tax where the Calculation is Made
by the Assessee Himself [Section 209]
14.1.3 How to Deposit Advance Tax
14.2 Advance Tax Payment: Due Dates and Interest on Late Payment

14.2.1 Interest under Section 234C for Deferment of Payment of Tax
14.2.2 Consequences of Non-payment of Advance Tax
14.3 Double Taxation Relief
14.3.1 Main Reasons for Double Taxation
14.3.2 Rules due to which Double Taxation Arises

14.3.3 Types of Relief
14.3.4 Method of Giving Relief from Double Taxation
14.3.5 Taxation of Business Process Outsourcing Units in India

14.3.6 Concept of Permanent Establishment
14.4 Double Taxation Relief Provisions in India
14.5 Summary
14.6 Keywords
14.7 Review Questions

14.8 Further Readings

Objectives

After studying this unit, you will be able to:

Discuss the Concept of Advance Tax Payment
Describe Due Dates and Interest on Late Payment on Advance Tax Payment
Explain Double Taxation Relief
Elucidate Double Taxation Relief Provisions in India

Introduction

Tax payers whose total income is likely to be chargeable to tax for the assessment year are
required to pay tax in advance during the financial year (April 1 to March 31) on their estimated

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