Taxpayer is required to pay an Advance tax in the current Financial year if his tax liability of the previous Financial year was more than Rs. 10,000/-. Income-tax department has provided quarterly due dates for payment of advance tax in case of individual taxpayers.
Click here to know about the due dates for payment of Advance tax (F.Y. 2015-16).
Other key points for Interest U/s. 234B:-
- Interest is payable at 1% of the tax liability.
- The period for which interest is calculated will start immediately from the 1st day of April and end on the respective quarter due date.
- This interest is compulsory. Hence it cannot be reduced or waived by any Income-tax authority.
- If the taxpayer fails to pay Advance tax installment for respective quarter, then interest U/s. 234B is charged automatically. Hence, Income-tax department is not required to intimate taxpayer about payment of this interest.
- If the taxpayer pays excess Advance tax in any quarter, then this excess amount can be used for calculation of Advance tax installments for other quarters.
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