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

  • Monthly GSTR 7 (Summary of Tax Deducted at Source (TDS) and deposited) for January 2021

    Feb 10th ,2021
  • Monthly GSTR 8 (Summary of Tax Collected at Source (TCS) and deposited by e-commerce operators) for January 2021

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

    Feb 11th ,2021
  • GSTR 6 (Details of ITC received and distributed by ISD) Monthly Filing Due Date for January 2021

    Feb 13th ,2021
  • Income Tax Returns Audit Cases

    Feb 15th ,2021
  • GSTR 3B for January 2021 (Annual Turnover of more than Rs 5 Cr in Previous FY)

    Feb 20th ,2021