The Government of India requires the funds to maintain law and order in the country and to promote activities for the welfare of the public. For the said purpose the Government collects the funds by imposing various taxes upon the public. These taxes may be direct or indirect. The most source of fund of the Government is Income Tax.
As you are aware that Income Tax is a direct tax. Income Tax is paid three ways Self Assessment Tax, Advance Tax, and Regular Assessment Tax.
Self Assessment Tax is paid at the time of submitting the Income Tax Return up to the month of July. Advance Income Tax is paid in four installments in every quarter of the same financial year. Regular Assessment Tax is paid when the demand is generated by CPC or by the assessing officer.
The Government requires the fund for said purpose on regular basis. So this reason the Government introduced the Advance Tax scheme to meet out the expenditure for public welfare activities.
The assessee whose Income Tax amount is more than Rs. 10000.00 are liable to pay advance tax in four quarterly installments in the same financial up to 90 percentage of the Income Tax Amount. If the assessee does not pay advance tax on prescribed dates or he is a defaulter, he will have to pay simple interest by 1 percent per month.
Income Tax Department giving the notice of advance tax to the assessee. This notice is being given on the basis of proceeding previous year's Self Assessment Tax. Such assessee, who have deposited the Self Assessment Tax more than Rs.10000.00. Advance Tax Fulfill the requirements of the fund from time to time. If the assessee does not pay the advance tax on time then the Government short of money and all the activities for the public welfare are stopped.
If the assessee receives this type of notice, no need to respond to the notice it is only informative. Either you pay Advance Tax or not. If you do not pay the Advance Tax you will have to pay interest on tax only.
We hope you would have liked our post so please like, share, and subscribed to our website. If you have any query then please comment in the comment box.
0 Comments