CMA Intermediate · Direct and Indirect Taxation · Advance Tax
Anita Traders, an assessee liable to pay advance tax and not covered by the special presumptive provisions, estimates advance tax of Rs. 80,000 for the year. What is the minimum cumulative amount it should have paid by 15th December?
The minimum cumulative advance tax by 15th December is Rs. 60,000. Section 408(1) requires at least 75% of the advance tax by that date, and 75% of Rs. 80,000 equals Rs. 60,000.
- ARs. 12,000
- BRs. 36,000
- CRs. 60,000Correct
- DRs. 80,000
Explanation
Section 408(1) requires not less than 75% by 15th December. 75% of Rs. 80,000 = Rs. 60,000. Rs. 36,000 is the 45% figure for September.
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