Section - 211 and 234C - Rationalisation relating to advance tax -


Under the existing law installment of advance tax are to be paid on the due dates. It is however provided that an eligible assessee who is subject to presumptive tax under section 44AD is liable to pay advance tax in a single installment on or before 15th March every financial year.


The scheme of presumptive taxation was extended to professionals by the Finance Act 2016. A similar provision is now proposed to be made in section 44ADA dealing with presumptive taxation of professionals provided that advance tax can be paid by them in one installment on or before 15th March.


Further vide Finance Act,2016 persons deriving income from dividend exceeding Rs.10 lakhs were subjected to tax at the rate of 10%. Appreciating that it may be difficult for them to correctly determine such liability within the payment schedule as specified under section 211, it is proposed to provide that such persons will not be subject to levy of interest on deferment of advance tax if the shortfall in payment of advance tax is on account of under-estimation or failure in estimation of income from dividend taxable under section 115BBDA.


Consequential amendment has been made in section 234C.


The amendment takes effect from 1st April 2017 relevant to assessment year 2017-18