As per the existing provisions of sub-section (1) of section 211, the advance tax payment schedule for a company is fifteen per cent, forty-five per cent, seventy-five per cent and hundred per cent of tax payable on the current income to be paid by 15th June, 15th September, 15th December and 15th March respectively. For other assessees, the advance tax payment schedule is thirty per cent, sixty per cent and hundred per cent of tax payable on current income to be paid by 15th September, 15th
December and 15th March respectively.
December and 15th March respectively.
Based on the recommendations of Expenditure Management Commission clubbed with the fact that most of the advance tax is now paid electronically it is proposed to rationalise schedule for advance tax payment and prescribe the same advance tax schedule for all assessees other than an eligible assessee in respect of eligible business as referred to in section 44AD. The modifi cation in payment schedule will facilitate forecasting of revenue collections during a fi nancial year with greater accuracy.It is further proposed that an eligible assessee in respect of eligible business referred to in section 44AD opting for computation of profi ts or gains of business on presumptive basis, shall be required to pay advance tax of the whole amount in one instalment on or before the 15th March of the financial year.Consequential amendments are also proposed to be made to section 234C which provides for chargeability of interest for deferment of advance tax to bring it in sync with the amendments proposed in section 211.
It is also proposed that interest under section 234C shall not be chargeable in case of an assessee having income under the head “Profi ts and gains of business or profession” for the fi rst time, subject to fulfi llment of conditions specifi ed therein.
These amendments will take effect from 1st day of June, 2016.