Advance tax date missed

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  1. I have missed the 15th Jun 16 date for advance tax. Should I pay the 15% liability right away OR by next deadline in September. Will it make difference in interest calculation?
  2. Yes obviously it will make difference. There is interest @1% per month if you delay in depositing advance tax liability.
    Advice to you that deposit that liability as soon as possible to avoid unnecessary interest .Don't wait for next due date.
  3. Thank you sir for your instant feedback.
    But one thing that always comes to my mind is that the next slot is 15th Sept where 45% tax needs to be paid. So the interest on the missed tax will be charged from now till 15th Sept or if I pay today it will be charged till the date of payment @ 1%?
  4. ZED

    ZED Well-Known Member

    Extracts from S.234C
    If the advance tax paid by such assessee on its current income on or before the 15th day of June is less than fifteen per cent of the tax due on the returned income,then, the assessee shall be liable to pay simple interest at the rate of one per cent per month for a period of three months on the amount of the shortfall from fifteen per cent .

    Therefore, you have already incurred interest liability for 3 months @ 1 % per month. Even if you pay today, the interest liability will not be decreased. Rather invest that money to earn something and pay next installment of advance tax [45%] by 15th Sept.
  5. Thanks ZED. That was what I meant. Paying now doesn't make sense that means. I may as well pay at the next date. Is that right?
  6. ZED

    ZED Well-Known Member

    Before the next date.
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