Clause 204 - Liability to pay advance income-tax - Direct Taxes Code Bill, 2009

C: ADVANCE TAX Liability to pay advance income-tax 204. (1) Every assessee shall be liable to pay advance income-tax during any financial year in respect of his total income of the financial year, if the amount of advance income-tax payable exceeds ten thousand rupees. (2) The amount of advance income-tax payable by an assessee in the financial year shall be computed in the following manner: (a) the assessee shall first estimate his total income and calculate income-tax thereon at the rates in force in the financial year; (b) the income-tax so calculated shall be reduced by - (i) the amount of income-tax which would be deductible or collectible at source during the financial year from any income which is taken into account in estimating the total income; (ii) the amount of credit under section 206, allowed to be set off in the financial year; and (c) the balance amount of income-tax shall be the advance income-tax payable. (3) The advance income-tax, in the case of a company, shall be payable in four instalments during the financial year on or before the dates specified in Column 1 of Table 7 and shall be equal to the amount specified in corresponding entry in Column 2 of the Table; TABLE - 7 Date of instalment Amount payable (1) (2) On or before the 15th June Not less than fifteen per cent. of the advance income-tax. On or before the 15th September Not less than forty-five per cent. of the advance income-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 the advance income-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 the advance income-tax as reduced by the amount or amounts, if any, paid in the earlier instalment or instalments. (4) However, the advance income-tax, in case of any other person, shall be payable in three instalments, during the financial year on or before the dates specified in Column 1 of Table 8 and shall be equal to the amount specified in corresponding entry in Column 2 of the Table. TABLE - 8 Date of instalment Amount payable (1) (2) On or before the 15th September Not less than thirty per cent. of the advance income-tax. On or before the 15th December Not less than sixty per cent of the advance income-tax, as reduced by the amount, if any, paid in the earlier instalment. On or before the 15th March The whole amount of the advance income-tax as reduced by the amount or amounts, if any,paid in the earlier instalment or instalments. (5) The assessee may increase or reduce the advance income-tax payable in the remaining instalment to accord with the estimate of his total income and make payment of such advance income-tax in the remaining instalment accordingly. (6) Any amount of advance income-tax paid after 15th March but before the expiry of the financial year shall be treated as advance income-tax paid during the financial year.