Provisions Related to Advance Tax under Income Tax Act 1961

Liability for Payment of Advance Tax (Section 208):

  • As per section 208 of Income Tax Act, 1961, every person whose estimated tax liability for the year is Rs. 10,000 or more, shall pay his tax in advance, in the form of “advance tax”. Such advance tax must be paid in four instalments on or before due dates of advance tax payment. In this article we shall discuss about various provisions related to Advance Tax and applicable interest in case of non-conformance to such provisions.
  • We know that income earned during the financial year 2018-19 shall be charged to tax in the assessment year 2019-20. But the assessee is required to pay tax, in advance, on the taxable income of financial year 2018-19 during the financial year 2018-19 itself.
  • Advance Tax, as computed in accordance with the provisions of this chapter, shall be payable during a financial year, only when the amount of such advance tax payable by the assessee during that year is Rs. 10000 or more.



Housing Loan Income Tax benefits

To own a house is dream of one and all. However, the stark inflation in real estate market has proven to be a nightmare for young couples in India who aspire to own a house. Thanks to Income Tax Act which has given Home Loan borrowers a reason to cheer. There are two sections under Income Tax Act i.e. Section 80C and section 24 under which a Home Loan borrower can claim deductions in relation to Home Loan.


Deduction U2FS 80E Interest on Education Loan

Keeping in mind highly competitive job market in India and across the globe, many of us prefer to enrol for higher education to add extra feathers to our cap. However, considering rising cost of good quality education, one may prefer to take education loan to fund additional cost of higher studies. If you are one such person, section 80E of Income Tax Act, 1961 can bring some tax relief for you.

Section 80E deals with deduction from gross total income in respect of payment of interest on loan taken for higher education for self, spouse, children or a student of whom you are legal guardian.


Deduction U2FS 80E Interest on Education Loan 1

Considering the rising inflation in health care sector in India, medical insurance policy has become a must for all. However, government has offered a sigh of relief particularly to lower and mid income group assessees by extending the amount of deduction which can be availed in respect of medical insurance premium. Section 80D of Income Tax Act, 1961 deals with this matter. According to section 80D, a deduction from gross total income can be availed in respect of medical insurance premium paid by an individual / HUF assessee up to certain limit. Such deduction can be claimed for premium paid for self, spouse, dependent children and parents. Similarly, an HUF can claim deduction in respect of premium paid for any of the members of HUF.

Who can claim deduction u/s 80D?


Composition Scheme Under GST

GST has brought many compliance requirements with its implementation like return filing, payment of GST on monthly basis etc. Small dealers who operate at relatively lower scale and margins find it difficult to comply with many regulations as dedicated resources and manpower is required for the purpose. In order to provide relief to such small taxpayers, the Government has come up with the concept of "Composition Levy" (aka Composition scheme) under GST. Any dealer registering under GST has two options i.e. Registration as Regular Dealer or under Composition scheme. By opting for composition scheme, the dealer can avail relief from many compliance requirements.


Inventories Valuation as per Ind AS 2

Valuation of inventories is one of the key areas that require special attention on part of accountants. While determining fair value of inventories multiple factors must be kept in mind like Accounting Standards, Valuation Method, Accounting Concept of Prudence etc. In this article we shall discuss issues related to inventory valuation from the point of view of Indian Accounting Standards (Ind AS).

Financial Management