Payment of advance tax in pursuance of order of Assessing Officer
If despite the legal obligation cast upon a taxpayer (who had earlier been assessed to income tax), he fails to pay advance tax (or advance tax is lower than the correct amount), the Assessing Officer may pass an order requiring him to pay advance tax on his current year’s income. Such an order must be passed during the financial year but not later than the last day of February.
On receipt of the notice from the assessing officer to pay advance tax the assessee can submit his own estimate of lower current income / advance tax and pay tax accordingly. In such a case he has to send intimation in Form No.28A to the assessing officer.
Alternatively, if the advance tax on current income as per own estimate of the assessee is likely to be higher than the amount estimated by the Assessing Officer, the assessee shall pay higher tax in accordance with his own calculation. In such case, no intimation to the Assessing Officer is required.
Computation of tax by Assessing Officer
The total income of latest previous year in respect of which the assessee has been assessed by way of regular assessment or the total income returned by the assessee in any return of income furnished by him fro any subsequent previous year, whichever is higher, shall be taken as current income by the Assessing officer.
Tax on the current income at the rates in force during the financial year minus tax deducted or collected at source, is the amount of advance tax payable by the assessee. Calculation can be made on similar lines when the assessee wants to make upward/ downward revision of current income.
Payment of advance tax in pursuance of Revised order of Assessing Officer
The order passed by the Assessing Officer to pay advance tax can be revised by him, if subsequent to the making of an order to pay advance tax but before March 1st of the relevant financial year, a return of income in respect of any later year has been furnished or any assessment for any later year has been completed at a higher figure. On receipt of the revised order the assessee will have to pay advance tax accordingly.
The assessee can however, submit his own estimate of lower current income/ advance tax and pay tax accordingly. In such a case ha has to send intimation in Form No. 28A to the Assessing Officer.
Alternatively, if the advance tax on current income as per own estimate of the assessee is likely to be higher than the amount re-estimated by the Assessing Officer, the assessee shall pay higher tax in accordance with his own calculation. In such case, no intimation to the Assessing Officer is required.
Computation of tax
The total income declared in the return furnished by the assessee for the later previous year or total income in respect of which the regular assessment is made after passing an order by the Assessing Officer but before March 1st, shall be taken and income-tax thereon shall be calculated at the rates in force in the financial year. From the tax so determined, tax deducted at source will be deducted.
