Doing Business in India - RSM Austria

Tax is payable in advance on income, including capital gains, if the tax computed as
payable for any year is Rs. 10,000/- or more. Advance tax is payable on specified
dates during the financial year in the manner set out below. The advance tax
payable is determined by estimating the total income (including capital gains) for
the year. Tax is to be calculated at the rates applicable for the financial year and is to
be reduced by the amount of withholding tax deductible or collectible in terms of
any provision of the Act. While shortfalls or excess payments, consequent upon
errors in estimation, may be adjusted in subsequent installments, shortfalls vis-àvis
specified percentages would attract interest. All taxes must be paid before filing
return of income.
The due dates for payment of advance tax and the amounts payable are:
Due Date
On or before 15 June
On or before 15 September
On or before 15 December
On or before 15 March
Amount Payable
Not less than 15% of advance tax
Not less than 45% of advance tax
less earlier installment
Not less than 75% of advance tax less earlier
installments
Whole of advance tax less earlier installments
In case of non-payment of specified percentages of advance tax by specified dates,
interest @ 1% per month or part thereof is payable on the shortfall.
The unpaid balance of tax is payable before filing the return of income with interest
thereon @ 1% per month. Further, interest @ 1% per month or part thereof is payable
on such balance tax, if the return is not filed within the specified time.
3.0 INCOME TAX ON NON-CORPORATES
3.1 Residential Status
3.1.1 Individuals
Individuals are classified into ‘residents’, ‘non-residents’ and ‘residents but not
ordinarily residents’. The gamut of income subject to tax is dependent on the
residential status irrespective of the nationality of the individual. The residential
status of an individual can be determined using the chart given on the next page
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DOING BUSINESS IN INDIA