ADVANCE TAX

ADVANCE TAX

You are expected to pay advance tax when your (Estimated) tax Liability for assessment
year exceeds rs. 10000/- These are two options available to confirm whether your client
is required to pay advance tax or not

A)  you can ask your client to provide last income tax return filed by him if the last income tax paid by
your client is less then Rs. 10000/- then Advance tax is not applicable to him


OR


B) Estimate your clients Gross Total income (GTI) by prepairing Estimated Profit and Loss
account and Balance sheet

From GTI reduce all deductions applicable under chapter VI A you will get net Taxable income
now calculate tax on the same. if tax is less then Rs.10000/- then Advance Tax is not payable
by your  client

However, if tax is more then Rs. 10000/- then advance tax is payable by your client in the ratio
Started Below

(PLEASE NOTE that advance tax provision is not applicable to salary income as already TDS
is calculated and deducted from salary)

For Corporate Assessee

i.e for public and Private Co.

Due Date                        Tax Ratio
15thJune                            15%
15th September                 30%
15th December                  30%
15th March                         25%

For Non Corporate Assessee

i.e Excluding public and Private Co.

Due Date                        Tax Ratio
15th September                  30%
15th December                   30%
15th March                          30%

*********PLEASE NOTE*********

ADVANCE TAX paid figure is very important for SHARE INVESTORS, as the shares price
increases as and when advance tax is paid by company increases.

(The logic is very simple, when your company profit increases thus, share price also
increases on the due dates of advance tax