Friday, 11 March 2016

A Comment on Advance tax liability of individuals more burdensome due to Budget 2016

My Comment on an article "Budget 2016 ups tax compliance burden on individuals: advance tax due 3 months earlier now" published in the Dated 10/03/2016 at 10:20 pm.

"Now, FM has introduced more strict compliance regarding Advance Tax payments of individuals at par with the companies. 

So, one should estimate his tax liability for the whole year in advance by 15th June itself and pay 1st instalment of tax at the rate of 15% of total tax on 15th June, 2nd instalment @45% on 15th September and 3rd instalment @75% on 15th December and final instalment of remaining tax on 15th March. 

Otherwise, interest on tax will be imposed at the rate of 1% per month for each default. 

So, we should be more careful now and deposit the advance tax on prescribed dates without failure to avoid levy of interest."

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