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Payment of Advance Tax Pursuant to Assessing Officer’s Order [Section 210(3) & 210(4)]

Advance Payment of Tax, Tax Ready Reckoner

1. Overview When a taxpayer fails to pay advance tax voluntarily, the Assessing Officer (AO) can issue an order under Section 210(3) demanding payment based on: The taxpayer’s last assessed income, or The returned income(if higher than the last assessed income). If the AO later revises this demand (e.g., due to new information), an amended order under Section 210(4) may be issued. 2. […]

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[Section 211]: Instalments of Advance Tax & Due Dates

Advance Payment of Tax, Tax Ready Reckoner

Section 211 of the Income Tax Act, 1961, mandates the payment of advance tax in four instalments during the financial year (FY) for most taxpayers, with specific due dates and percentages. Below is a detailed breakdown: 1. Regular Taxpayers (Non-Presumptive Income) [Section 211(1)(a)] DUE DATE % OF ADVANCE TAX PAYABLE (CUMULATIVE) KEY POINTS 15th June 15% First

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Payment of Advance Tax on Capital Gains & Casual Income [Proviso to Section 234C]

Advance Payment of Tax, Tax Ready Reckoner

Under Section 234C of the Income Tax Act, taxpayers are generally required to pay advance tax in instalments. However, the first proviso to Section 234C(1) provides relaxation for certain types of income where estimating tax liability in advance is difficult, such as: Capital gains(short-term or long-term) Casual income(lottery, gambling, crossword puzzles, etc.) Dividend income(introduced in Budget 2021) New business income(if income

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[Section 219]: Credit for Advance Tax

Advance Payment of Tax, Tax Ready Reckoner

Section 219 of the Income Tax Act, 1961 governs how advance tax payments are credited against a taxpayer’s final tax liability. Here’s a detailed analysis: 1. Basic Principle All advance tax paymentsmade during the financial year are fully credited to the taxpayer’s account Credit is given in the assessment year(AY) corresponding to the financial year (FY) of payment

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[Section 234A (1)]: Interest for Default in Furnishing Return of Income

Interest and Fee Payable, Tax Ready Reckoner

Applicability: Section 234A(1) of the Income Tax Act, 1961, levies interest if an assessee fails to file their income tax return: Under Section 139(1)(Original due date), Under Section 139(4)(Belated return), or In response to a notice under Section 142(1)(Special notice for filing return). When is Interest Charged? Interest is charged if: The assessee has unpaid tax liability(after deducting TDS/TCS/Advance Tax). The return is not

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[Section 234A (3)]: Interest for Default in Furnishing Return of Income Under Section 148

Interest and Fee Payable, Tax Ready Reckoner

Section 234A(3) of the Income Tax Act, 1961, deals with interest payable when an assessee fails to file a return of income in response to a notice issued under Section 148 (reassessment) or Section 153A (search cases). This provision ensures compliance with tax filing obligations even in cases where the Income Tax Department reopens assessments or conducts searches. Key

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[Section 234A (4)]: Increase/Decrease in Interest on Certain Orders

Interest and Fee Payable, Tax Ready Reckoner

Section 234A(4) of the Income Tax Act, 1961, deals with the adjustment of interest when there is a subsequent revision, appeal, or rectification that changes the tax liability after interest under Section 234A has already been charged. 1. When Does It Apply? Interest under Section 234A(1) or (3) may be recalculated if: The tax liability is modifieddue to: An appeal(e.g., CIT(A), ITAT, High Court, Supreme

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[Section 234B (1)]: Interest for Default in Payment of Advance Tax

Interest and Fee Payable, Tax Ready Reckoner

Section 234B(1) of the Income Tax Act, 1961, imposes interest if an assessee either: Fails to pay advance tax(even if liable), or Pays less than 90% of the total tax due(or 100% for non-tax audit cases). (A) Key Provisions of Section 234B(1) When is Interest Charged? Interest applies if: Advance tax paid is less than 90%of the actual tax liability (or 100% for non-tax

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[Section 234B (3)]: Interest Payable for Defaults in Payment of Advance Tax

Interest and Fee Payable, Tax Ready Reckoner

Section 234B(3) deals with the recalculation of interest under Section 234B when the assessed tax is modified due to: Appeal orders(CIT(A), ITAT, High Court, Supreme Court) Revision orders(Section 263/264 by Principal CIT/CIT) Rectification orders(Section 154) Reassessment orders(Section 147/153A) 1. When Does It Apply? If the final tax liability changes after: An appeal/revision/rectificationreduces or increases the tax demand. The assessing officer modifiesthe tax payable. 2. Effect

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