Do NRIs Have to Pay Advance Tax?

NRI needs to pay advance tax only in the situation where the tax liability of an individual exceeds Rs. 10000 in a particular financial year. In case you don’t pay your advance tax, Interest under Section 234B and Section 234C is applicable.

Do NRIs Have to Pay Advance Tax?

Interest under section 234B

Interest under section 234B is applicable either in one of the situations listed below -

  • If your tax liability after deducting TDS exceeds Rs.10000 in a particular financial year and you failed to pay your advance tax.

    OR

  • If the advance tax paid is less than 90% of the calculated tax.

Interest is calculated @ 1% of Assessed Tax after deducting the advance tax. Part of a month is rounded off to a full month as well as the amount on which interest is calculated is also rounded off in such a way that any fraction of a hundred is ignored.

Interest under section 234C

The interest on late payment of tax is 1% of the tax amount due. It is calculated from the specified cut off dates till the date of actual payment of outstanding taxes.

Calculation of Interest under section 234C – In case of a Taxpayer other than the one opting for presumptive income u/s 44AD

Rate of Interest Amount on which Interest is calculated Period of interest
If Advance Tax paid on or before June 15 is less than 15% of the Amount* Simple interest @1% per month 15% of Amount* (-)tax already deposited before June 15 3 months
If Advance Tax paid on or before September 15 is less than 45% of the Amount* Simple interest @1% per month 45% of Amount* (-) tax already deposited before September 15 3 months
If Advance Tax paid on or before December 15 is less than 75% of the Amount* Simple interest @1% per month 75% of Amount* (-) tax already deposited before December 15 3 months
If Advance Tax paid on or before March 15 is less than 100% of the Amount* Simple interest @1% per month 100% of Amount* (-) tax already deposited before March 15
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Due Dates

  • GSTR-7 Summary of Tax Deducted at Source (TDS) and deposited under GST laws

    Sep 10th ,2021
  • GSTR-8 Summary of Tax Collected at Source (TCS) by e-commerce operators under GST laws

    Sep 10th ,2021
  • GSTR 1 for Aug 2021 (turnover more than INR. 1.50 Crore)

    Sep 11th ,2021
  • GSTR-6 Details of Input Tax Credit (ITC) received and distributed by an Input Service Distributor (ISD)

    Sep 13th ,2021
  • GSTR-3B is a summary return to be filed by all taxpayers except those registered under the composition scheme, every month. However, from 1st January 2021, there is also quarterly filing option provided to taxpayers with annual aggregate tunrover of up to Rs.5 crore, opting for the QRMP scheme for Aug Month. (Aggregate turnover exceeding Rs.5 crore in the previous financial year)
     

    Sep 20th ,2021
  • GSTR-3B is a summary return to be filed by all taxpayers except those registered under the composition scheme, every month. However, from 1st January 2021, there is also quarterly filing option provided to taxpayers with annual aggregate tunrover of up to Rs.5 crore, not opting for the QRMP scheme for Aug Month. (Aggregate turnover up to Rs.5 crore in the previous financial year)

    Sep 20th ,2021