RATIONALISATION OF ADVANCE TAX PAYMENT SCHEDULE AND CHARGING OF INTEREST
PHASING OUT OF DEDUCTIONS & EXEMPTIONS
May 1, 2016PAYMENT OF INTEREST ON REFUND
May 1, 2016The current and proposed provisions in relation to schedule of advance tax payment are as follows:-
| Particulars | Current Provisions | Proposed Provisions |
| Company | Payment of advance tax in 4 installments viz. 15% by 15th June, 45% by 15th September, 75% by 15th December and 100% by 15th March. | Payment of advance tax in 4 installments viz. 15% by 15th June, 45% by 15th September, 75% by 15th December and 100% by 15th March. |
| Persons other than, Company and assessee opting for presumptive taxation | Payment of advance tax in 3 installments viz. 30% by 15th September, 60% by 15th December and 100% by 15th March. | Payment of advance tax in 4 installments viz. 15% by 15th June, 45% by 15th September, 75% by 15th December and 100% by 15th March. |
| Persons opting for presumptive taxation scheme | Payment of advance tax not required | Payment of 100% advance tax in 1 installment on or before 15th March |
Consequential amendments are proposed in Section 234C to bring it in sync with the above amendments. Further, it is proposed to amend Section 234C to include that interest under Section 234C shall not be chargeable in case the assessee has income under the head “Profits and gains of business or profession” for the first time, subject to prescribed conditions.
The above amendments shall provide greater accuracy in collection of taxes and shall be a boost for small businesses and start-ups.
These amendments will take effect from 1st day of June, 2016.