Advance Tax, TDS/TCS, Return Filing and Self-Assessment
Advance tax and interest
Corporate and non-corporate taxpayers pay advance tax in four instalments: 15% by 15 June, 45% by 15 September, 75% by 15 December and 100% by 15 March. Shortfall attracts interest u/s 234C at 1% per month for three months; non-payment of tax by 31 March attracts 234B at 1% per month until payment or assessment.
TDS and TCS
- 192 on salary, 194A on interest, 194C on contracts, 194Q on purchase of goods above Rs.50 lakh at 0.1%.
- 206C(1H) requires TCS on sale of goods above Rs.50 lakh at 0.1% where the buyer has not deducted TDS.
- TDS credit is available only if the deductor has filed the statement and the tax is paid.
Returns and self-assessment
- Due dates: 31 July for non-audit cases, 31 October for audit cases, 30 November for transfer pricing cases.
- Belated return u/s 139(4), revised return u/s 139(5), updated return u/s 139(8A) with additional tax u/s 140B.
- Self-assessment tax u/s 140A is payable before filing the return; 44AB audit applies at Rs.1 crore turnover, raised to Rs.10 crore where receipts and payments are at least 95% digital.
Worked example
Assessed tax Rs.4,00,000, TDS Rs.1,50,000, advance tax paid Rs.1,00,000 by 31 March. The shortfall is Rs.1,50,000, and interest u/s 234B runs at 1% per month from 1 April until the date of determination.
Traps
- Missing 234C interest on capital gains or winnings that arose after an instalment date and were not paid in a later instalment.
- Ignoring 234F late fee when the return is filed late.
- Filing an updated return to declare a loss, which is not permitted.
- Claiming TDS credit that the deductor has not reported.