Individual and corporates advance tax filings under I-T scanner

The Income Tax (I-T) department is seeking an explanation from a number of corporate and individual tax assessees, who have filed their self-assessment for the past three years, for deferring their advance tax, reports Business Standard.

The financial daily reports that the tax department suspects assessees are reporting less tax liability for the advance tax payment and presenting them as a tax on additional income or windfall gains at the end of financial year.

The tax department has asked taxpayers to explain the method of computation through which they have arrived at the taxable income after they found significant variation in the computation of final income from the estimated.

This move was triggered after muted collection from advance tax for the September quarter, tax payment from the top 45 corporates in Mumbai only showing a jump of 10.6 percent and lower tax paid by the public sector banks.

As per the I-T law advance tax has to be paid if tax liability for the financial year exceeds Rs 10,000 and they are paid in four installments of 15 percent on or before June 15, 30 percent each on or before September 15 and December 15, respectively, and 25 percent before March 31.#casansaar (Source - Business Standard. MoneyControl)