Page 282 - DCOM508_CORPORATE_TAX_PLANNING

Unit 12: Advance Tax Planning and Tax Relief

Notes
!
Caution

1. Please use a separate challan for each type of payment.
2. Please note that quoting your Permanent Account Number (PAN) is mandatory.
3. Please note that quoting false PAN may attract a penalty of ` 10,000/- as per section
272B of I.T. Act, 1961.

4. Please note that to deposit Appeal Fees either Major Head 020 or 021 (depending
upon the tax payer’s status) has to be stocked under ‘Tax Applicable’. Followed by
this; Minor Head: Self Assessment Tax (300) has to be ticked under ‘Type of Payment’

and the amount is to be filled under Others in ‘Details of Payments’.
5. To deposit taxes, appeal fees, etc. in respect of block period cases; enter the fi rst
Assessment Year of the block period followed by the last Assessment Year of the
period. For example, if the block period is 1/04/85 to 5/3/96, it would be entered as
1986-97 in the space indicated for Assessment Year. If taxes are being deposited, tick

the box Self Assessment (300) under Type of Payment and fill up amount under ‘Tax’
while in respect of appeal fees, enter amount under ‘Others’.
Please use this challan for depositing taxes (types of payment) mentioned overleaf.
Kindly do not use this challan for depositing tax deduction at source (TDS)
Kindly ensure that the bank’s acknowledgement contains the following:

1. 7 DIGIT BSR CODE OF THE BANK BRANCH
2. DATE OF DEPOSIT OF CHALLAN (DD MM YY)
3. CHALLAN SERIAL NUMBER
These will have to be quoted in your return of income.

Self Assessment

State whether the following statements are true or false:
1. Advance Payment of tax is method of collection of tax by the central government in the
form of prepaid taxes.
2. The advance tax is not paid in the previous year.
3. Tax on current income at the rate in force during the financial year will be calculated by the

Assessing Offi cer.
4. Advance Tax can not be deposited through Challan.

12.2 Advance Tax Payment: Due Dates and Interest on Late Payment

Advance Tax receipts help the Govt. to receive a constant flow of tax receipts throughout the year
so that expenses can be incurred rather than receiving all tax payments at the end of the year.
Advance Tax is liable to be paid by all assesses like Salaried, Self Employed, Businessman etc.
before the filing of Income Tax Return.

For Individuals with Salary as the sole source of income, Advance Tax would be taken care of

by the TDS deducted by the employer at the time of payment of salaries as reflected in Form 16
and thus there would hardly be any Advance Tax payable. For all assesses earning income from

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