Financial Risk Manager

Ways of Financial and Risk Management

Advance Income Tax
Thursday, October 15, 2009

Pay you First Quarterly installment of Advance Income Tax (Companies other than banking companies) by 15th October, 2009.

Companies other than banking companies are liable to pay advance income tax for the current year in four installments.

Calculation Formula: (A x B/C)- D

Where
A = is the taxpayer's turnover for the quarter
B = is the tax assessed to the taxpayer for the latest tax year
C = is the taxpayer's turnover for the latest tax year
D = is tax paid in the quarter for which tax credit is allowed under section 168, other than tax deducted under section 155

Tax liability under section 113 shall also be taken into account while working out payment of advance tax.
In the absence of last assessed income or declared turnover, tax payable shall be estimated on the basis of quarterly current turnover.
Adjustment for the tax already paid may be made.

Labels: advance income tax