What is Installments of advance tax and due dates? Section 211 of Income Tax Act 1961

Instalments of advance tax and due dates are defined under section 211 of Income Tax Act 1961. Provisions under this Section are :

Section 211 of Income Tax Act "Installments of advance tax and due dates"

Advance tax liability of all assesses as per the amended provision of Section 211 of Income Tax Act, 1961 is as under:

 

Due Date of Installment Amount Payable

On or before 15th June

Note Less than 15% of Such Advance Tax

On or before 15th September

Note Less than 45% of Such Advance Tax, reduced by the amount paid in the last installment or installments

On or before 15th December

Note Less than 75% of Such Advance Tax, reduced by the amount paid in the last installment or installments

On or before 15th March

Note Less than 100% of Such Advance Tax, reduced by the amount paid in the last installment or installments

Amended provision of section 211 of the Income Tax Act, 1961:

"Amendment of section 211
15. In section 211 of the Income-tax Act,-
(a) for sub-section (1), the following sub-section shall be substituted, namely:-
'(1) Subject to the provisions of this section and of section 212, advance tax shall be payable in three equal instalments on the following dates during the financial year, namely:-
(i) the 15th day of June, the 15th day of September and the 15th day of December, in the case of an assessee whose total income to the extent of 75 per cent. thereof or more is derived from a source or sources for which the previous year (relevant to the assessment year next following the financial year aforesaid) ends on or before the 31st day of December;
(ii) the 15th day of September, the 15th day of December and the 15th day of March, in any other case:
Provided that in respect of any class of assessees referred to in clause (i), the Board may, having regard to the nature of dealings in the business carried on by such assessees, the method of accounting followed by them and other relevant factors, authorise, by notification in the Official Gazette and subject to such conditions as may be specified therein, the payment of the last instalment of 4he advance tax on the 15th day of March during the financial year instead of on the 15th day of December.

Explanation.-In this sub-section, 'total income" means,-
(a) in a case Where advance tax is paid by the assessee in accordance with an order of the Income-tax Officer under section 210, the total income with reference to which the advance tax payable has been calculated in such order;
(b) in a case where the advance tax is paid in accordance with an estimate made by the assessee under section 212, the total income with reference to which the advance tax is so estimated,

as reduced, in either case, by the capital gains, if any, included therein.';

(b) in sub-section (2), for the figures, letters and words "1st day of March" and "1st day of December", the figures, letters and words "15th day of March" and "15th day of December" shall, respectively, be substituted."

Old provision before amendment till financial year 2015-16 are as under:

211. (1) Advance tax on the current income calculated in the manner laid down in section 209 shall be payable by-
(a) all the companies, who are liable to pay the same, in four Installments during each financial year and the due date of each Installment and the amount of such Installment shall be as specified in Table I below :

Due Date of Installment Amount Payable

On or before 15th June

Note Less than 15% of Such Advance Tax

On or before 15th September

Note Less than 45% of Such Advance Tax, reduced by the amount paid in the last installment or installments

On or before 15th December

Note Less than 75% of Such Advance Tax, reduced by the amount paid in the last installment or installments

On or before 15th March

Note Less than 100% of Such Advance Tax, reduced by the amount paid in the last installment or installments

(b) all the assessees (other than companies), who are liable to pay the same, in three Installments during each financial year and the due date of each Installment and the amount of such Installment shall be as specified in Table II below :

 

Due Date of Installment Amount Payable

On or before 15th September

Note Less than 30% of Such Advance Tax, reduced by the amount paid in the last installment or installments

On or before 15th December

Note Less than 60% of Such Advance Tax, reduced by the amount paid in the last installment or installments

On or before 15th March

Note Less than 100% of Such Advance Tax, reduced by the amount paid in the last installment or installments

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.

(2) 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.

 

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