Context: Advance tax for FY 2020-21 in case of FnO turnover needs to be paid by 15th March in ONE installment, if Presumptive tax scheme is availed.
Question 1: For the Turnover generated between 16th March to 31st March (last trading day in FY),
- Can the tax be paid by 31st March end of day
- If so, that will be SECOND installment, is that allowed. For the second installment will there be any penalty as the 100% advance tax is required to be paid by 15th March
Question 2: Alternatively, can 100% Advance tax be paid on 31st March (which means, no tax paid on 15th March or till 30th March)? Will there be any penalty, considering, advance tax wasnt paid by original due date of 15th March.
Question 3: What is the procedure for paying the advance tax for FnO turnover? Can this be done without a CA?
Answer to question 1
- You have to pay your 100% advance tax upto 15th march by best estimate but if you pay upto 31st march then all tax paid upto 31st march is treated as advance tax. So you can pay but you will have to bear interest under section 234C.
- One installment mean there is only one due date I.e. 15 the march..There is no hard restriction on number of installment . You can pay hundred installment and all tax paid upto 31st march is treated as advance tax. But if your 100% advance tax is not paid up to 15th march then you have to bear interest 1% per month or part of month u/s 234C.
Answer to question 2:
If you do not pay any advance tax upto 15th march and pay it by 31st march..Still it is advance tax and you are safe from 234B interest but as per rule you had to deposit 100% advance tax upto 15th march hence you have to bear interest u/s 234C.
Answer to question 3:
Advance tax can be easily paid without any help from CA:-
1.by visiting the website https://www.incometaxindiaefiling.gov.in/home
2. click E-pay tax link.
3. Click continue to NSDL website
4. Choose challan no. 280
5. Then E-pay by choosing type of tax as Advance Tax..And by entering correct PAN and correct ASsessment year.