Section: Section 234E of Income Tax Act, 1961
Purpose: To ensure timely payment of income tax by taxpayers
Applicability: All individuals, HUFs, firms, companies, and other entities liable to pay income tax in India
Timeline:
Advance Tax:
- 15th June: 15% of the total tax liability should be paid
- 15th September: 45% of the total tax liability should be paid
- 15th December: 75% of the total tax liability should be paid
- 15th March: 100% of the total tax liability should be paid
Self-assessment Tax:
- On or before the due date of filing income tax return, which is 31st July for individuals and HUFs and 30th September for companies
Tax Deducted at Source (TDS):
- TDS on Salary: Monthly basis by the employer
- TDS on Non-Salary payments: Within one week from the end of the month in which the deduction was made
- TDS on Rent: Within one month from the end of the month in which the deduction was made
Tax Collected at Source (TCS):
- TCS on Sale of Goods: Within one week from the end of the month in which the collection was made
- TCS on Sale of Services: Within one week from the end of the month in which the collection was made
Exemption: No exemption is available for late payment of income tax
Penalty:
- Interest at the rate of 1% per month or part of the month is charged on the unpaid tax amount
- Late filing fee of Rs. 5,000/- is applicable for filing the income tax return after the due date but before 31st December. The late filing fee increases to Rs. 10,000/- if the return is filed after 31st December but before 31st March. For those whose income is below Rs. 5 lakhs, the late filing fee is restricted to Rs. 1,000/-
Forms:
- Challan 280 for payment of Advance Tax and Self-assessment Tax
- Challan 281 for payment of TDS and TCS
