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 3B for August 2020 (15 States/UT’s - Chhattisgarh, MP, Gujarat, Daman and Diu, Dadra and Nagar Haveli, Maharashtra, Karnataka, Goa, Lakshadweep, Kerala, TN, Puducherry, Andaman and Nicobar Islands, Telangana and Andhra Pradesh) Oct 1st, 2020
  • GSTR 3B for August 2020 (22 States/UT’s - Himachal Pradesh, Punjab, Uttarakhand, Haryana, Rajasthan, Uttar Pradesh, Bihar, Sikkim, Arunachal Pradesh, Nagaland, Manipur, Mizoram, Tripura, Meghalaya, Assam, West Bengal, Jharkhand, Odisha, Jammu and Kashmir, Ladakh, Chandigarh, Delhi) Oct 3rd, 2020
  • GSTR 1 for September 2020 (turnover more than INR. 1.50 Crore) Oct 11th, 2020
  • Monthly GSTR 6 for September 2020 Oct 13th, 2020
  • Monthly GSTR 7 (Summary of Tax Deducted at Source (TDS) and deposited) for September 2020 Oct 10th, 2020
  • Monthly GSTR 8 (Summary of Tax Collected at Source (TCS) and deposited by e-commerce operators) for September 2020 Oct 10th, 2020
  • CMP 08 for July to September 2020 Oct 18th, 2020
  • GSTR 5 (Non-Resident Foreign Taxpayers) Monthly Filing Due Date for September 2020 Oct 20th, 2020
  • GSTR 5A (Non-Resident OIDAR Service Provider) Monthly Filing Due Date for September 2020 Oct 20th, 2020
  • GSTR 3B for September 2020 (Annual Turnover of more than Rs 5 Cr in Previous FY) Oct 20th, 2020
  • GSTR 9 and 9C (Annual Return) FY 2018-19 Dec 31st, 2020
  • GSTR 1 (Quarterly) for July to September (Summary of outward supplies where turnover is upto Rs 1.5 crore) Oct 31st, 2020
  • Annual GSTR 4 for FY 2019-20 Oct 31st, 2020