New Advance tax Provisions of Income tax as per Finance Bill 2016

Advance Tax as proposed by Finance Bill 2016

Advance Tax Payments date for  Corporate and Non Corporate Assessee (All Assessee’s)

The Finance Bill, 2016 now treats the non-corporates at par with corporates by mandating advance tax payments in four instalments viz.

15% of the tax on the returned income, on or before 15^th June;

45% of the same, on or before 15^thSeptember;

75% on or before 15^th December;

and the  whole amount of tax on the returned income before 15^th March.

Presumptive income shall also be subject to advance tax: In the case of persons who opt for presumptive income determination under section 44AD, the whole amount of such advance tax must be paid on or before 15^th March.

Till date persons engaged in business and who declare income under section 44AD, were not liable for interest under sections 234B and 234C. Now the impact of the Finance Bill, 2016 would be that such persons too have to pay advancetax on or before 15^th March of each previous year.

The amendment would be applicable from 01.06.2016 and hence the taxpayers have to comply with this provision right from June 2016 instalment of advance tax.