Page 283 - DCOM508_CORPORATE_TAX_PLANNING

Corporate Tax Planning

Notes any source other than salary, Advance Tax is payable in instalments. Advance tax on the current
income calculated in the manner laid down in section 209 shall be payable by:
(i) all the companies, who are liable to pay the same, in four instalments during each fi nancial
year and the due date of each instalment and the amount of such instalment shall be as

specified in table 12.1 below :
Table 12.1: Due Date and Amount Payable

Due date of instalment Amount payable
On or before the 15th June Not less than fifteen per cent of such advance tax.

On or before the 15th September Not less than forty-five per cent of such advance tax, as reduced by

the amount, if any, paid in the earlier instalment.
On or before the 15th December Not less than seventy-five per cent of such advance tax, as reduced

by the amount or amounts, if any, paid in the earlier instalment or
instalments.
On or before the 15th March The whole amount of such advance tax as reduced by the amount
or amounts, if any, paid in the earlier instalment or instalments.

Source: http://law.incometaxindia.gov.in/DitTaxmann/IncomeTaxActs/2005ITAct/section211.htm
(ii) all the assessees (other than companies), who are liable to pay the same, in three instalments

during each financial year and the due date of each instalment and the amount of such
instalment shall be as specified in Table 12.2 below :

Table 12.2: Due Date and Amount Payable
Due date of instalment Amount payable
On or before the 15th September Not less than thirty per cent of such advance tax.
On or before the 15th December Not less than sixty per cent of such advance tax, as reduced by the
amount, if any, paid in the earlier instalment.
On or before the 15th March The whole amount of such advance tax as reduced by the amount
or amounts, if any, paid in the earlier instalment or instalments.

Source: http://law.incometaxindia.gov.in/DitTaxmann/IncomeTaxActs/2005ITAct/section211.htm
Provided that any amount paid by way of advance tax on or before the 31st day of March shall
also be treated as advance tax paid during the financial year ending on that day for all the

purposes of this Act.

Did u know? If the notice of demand issued under section 156 in pursuance of an order of
the Assessing Officer under sub-section (3) or sub-section (4) of section 210 is served after

any of the due dates specified in sub-section (1), the appropriate part or, as the case may be,

the whole of the amount of the advance tax specified in such notice shall be payable on or
before each of such of those dates as fall after the date of service of the notice of demand.

Task State whether Mr. X is liable to pay advance tax and if yes then what amount should
be paid by what date. The income of Mr. X is ` 2, 00,000.

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