Advance Tax Liability for Asst Year 2019-20

Following are the sections of the Income Tax Act, 1961 which deal with the provisions of advance tax:

• Section 208: Conditions of liability to pay advance tax
• Section 209: Computation of advance tax
• Section 210: Payment of advance tax by the assessee of his own accord or in pursuance of order of Assessing Officer.
• Section 211: Installments of advance tax and due dates

As per section 208, advance tax shall be payable during a financial year in every case where the amount of such tax payable by the assessee is ten thousand rupees or more. Thus provision of advance tax is applicable on all assessee whose tax liability comes more than Rs.10,000/-. However in case following case advance tax need not be deposited :

1) where entire tax liability is covered by TDS deducted then in this situation advance tax is not applicable.

2) Resident individuals who are over 60 years of age and do not have income chargeable under the head ‘Profits and Gains of Business or Profession’ are not required to pay advance tax. Further assessees covered under section 44AD of the Act can deposit his liability of entire advance tax upto 15th March 2018

(a)  Section 211(1) was amended by Finance Act 2016 to provide that advance tax will be paid in four installments of 15%, 45%, 75% and 100% of tax payable on the current income by 15^th June, 15^th September, 15^th December and 15^th March, respectively in case of all assesses.

Earlier upto A.Y. 2016-17 the assessee other than corporate assessee paid Advance Tax in three Installment. Now all assessee except assessee covered u/s 44AD is treated at par for Advance Tax provisions.

(b) An assessee who declares profits and gains in accordance with the provisions of sub-section (1) of section 44AD or sub-section (1) of section 44ADA, as the case may be,  can deposit whole amount of Advance Tax during each financial year on or before the 15th March. [Section 211(b)]

Advance Tax Liability for All Assessee (other than covered under section 44AD of the I.T. Act 1961)

Due Date	Installment Payable
On or before 15th Jun, 2017	Not less than 15% of advance tax.
On or before 15th  Sep, 2017	Not less than 45% of advance tax as reduced by the amount paid in the earlier installment.
On or before 15Th Dec, 2017	Not less than 75% of advance tax as reduced by the amount paid in the earlier installments.
On or before 15Th Mar, 2018	The whole amount (100%) of advance tax as reduced by the amount paid in the earlier installments.

Advance Tax Liability for Assessee covered under section 44AD of the I.T. Act 1961

Due Date	Installment Payable
On or before 15th Jun, 2017	—
On or before 15th  Sep, 2017	—
On or before 15Th Dec, 2017	—
On or before 15Th Mar, 2018	The whole amount (100%) of advance tax as reduced by the amount paid in the earlier installments.

Note:

1. Resident individuals who are over 60 years of age and do not have income chargeable under the head ‘Profits and Gains of Business or Profession’ are not required to pay advance tax.
2. Any amount paid by way of advance tax on or before 31st March shall also be treated as advance tax paid during financial year ending on that day
3. Deduction under Chapter VIA are allowable while computing liability of advance tax.
4. TDS is to be reduced from total tax liability of assessee and then specified percentage be calculated of advance tax.

---