The following Assets are exempted from Wealth-Tax
1. Property held under a trust or other legal obligation for any public purpose of a charitable or religious nature in India.
2. Where the Assessee has interest in the property of HUF in which he is a member.
3. Assets and money brought into India by person of Indian Origin or Indian Citizen, from a foreign country with an intention to settle down permanently in India. For this purpose, amount standing to the person in Non-Resident(External) Account in any Bank, in India is deemed to be the amount brought in by him into India on that date. Above exemption is available for 7 successive Assessment Years.
PAYMENT OF ADVANCE TAX ON THE ESTIMATED TAXABLE INCOME BY ALL ASSESSES(Other than companies)
Installment Percentage Due Date
First 30% 15th September
Second 30% 15th December
Final 40% 15th March
e.g: If an Assesses estimated tax payable for the full year is Rs.30,000, he has to pay an Advance Tax of Rs.9,000 each in 1 st & 2nd Installment & Rs.12,000 in Final Installment.
• No Advance Tax need be paid, if total tax payable for the year is less than Rs.10,000.
• When employer deducts tax from Salary, employee need not pay Advance Tax.
• Non-payment or short payment of Advance Tax will attract interest.
Advance Tax Example:
Mr.Narasimhan estimates his income for the F/Y 2010-11 as on 1.9.2010
1.Business Income 5,00,000
2. Interest form Bank & NSC 25,000 Taxable Income:
3. PPF Contribution 10,000
4. Life Insurance Premium 26,000
5. ELSS 10000
6.TDS on Interest 2,400
(1 & 2) Rs.5,00,000 + 25,000 = 5,25,000
(3 to 5) Rs.10000,26000,10000=(-) 46,000
Tax on 4,79,000 including
Education Cess @ 3% 32,857
Less TDS on Interest 2,400
Total Tax Payable 30,457