City’s last date for advance tax is Monday
The I-T department in Mumbai — which is short of its Rs 1.4 lakh crore collection target by over Rs 40,000 crore — is in no mood to spare advance tax evaders, reports Manish Pachouly.mumbai Updated: Mar 14, 2010 01:05 IST
If you don’t pay all of your advance tax by Monday, expect income tax (I-T) officials at your door.
The I-T department in Mumbai — which is short of its Rs 1.4 lakh crore collection target by over Rs 40,000 crore — is in no mood to spare advance tax evaders.
The last date to pay the final installment is Monday.
Advance tax is paid in four installments and the last date is the 15th of every quarter, ending in June (15 per cent), September (30 per cent), December (30 per cent) and March (25 per cent).
The department needs to achieve its target by this month-end as the financial year is coming to an end. Advance tax comprises about 60 per cent to total tax collection.
From March 1, the department has hand-delivered more than 1,000 notices to companies suspected to be evading payment of advance tax.
“We are comparing such companies’ advance tax payments made this year with the amount paid last year,” a senior I-T official said requesting anonymity.
He said advance tax paid by many companies this year is far less than that recoded last year.
“This fall in payment this year seems deliberate,” the official said.
“The notice asks the company to either justify the fall in payment, or pay the amount (including the balance evaded in the first three quarters) by Monday,” he added.
He said companies still evading payment will be sent demand notices, which will involve a penalty and a fine.
Until February-end, the department collected Rs 99,210 crore in Mumbai.
Of the little over Rs 40,000 crore it needs to meet its target, officials suspect it will fall short by Rs 10,000 crore to Rs 15,000 crore.
“This is because collections of the first two installments were poor, with many sectors, including oil, performing poorly because of the economic slowdown,” the official said.
He added that growth in income tax collection in Mumbai until February-end compared to last year is only 7 per cent.
“The current year’s target is 20 per cent higher than last year’s collection of Rs 1.17 lakh crore,” he said.
On an all-India level, the department has collected about Rs 2.8 lakh crore against its target of Rs 4 lakh crore.
Growth on the all-India level so far is 7.5 per cent over last year’s collection.
First Published: Mar 14, 2010 01:05 IST