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Changes in Dates of Advance Payment of Fringe Benefit Tax
for the F.Y. 2007-2008 :
Under Current provisions of
Sec-115 WJ of Income Tax Act, Fringe Benefit Tax needs to be paid as follows:
The advance tax for the
first three quarters is to be paid on the basis of “actual
expenditure incurred”
in each quarter. However, the last installment of the advance tax may be paid
on an estimate basis, as the same has to be paid before the closure of the
financial year.
But as per the Finance Bill
presented today, Fringe Benefit Tax needs to be paid as follows:`
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Date
of Payment of FBT
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Amount
to be paid as FBT
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On or before the 15th June
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Not less than 15 % of such
advance tax
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On or before the 15th
September
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Not less than 45 % of such
advance tax as reduced by the amount , if any, paid in the earlier installment
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On or before the 15th
December
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Not less than seventy-five
per cent of such advance tax as reduced by the amount, if any, paid in the
earlier installment
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On or before the 15th March
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The whole amount of such
advance tax as reduced by the amount, if any, paid in the earlier installments.
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So, it becomes important to
estimate the likely expenses that are subject to FBT and pay
the tax accordingly. Otherwise, interest is levied u/s 115 WJ (3).
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