Understanding Advance Tax Payments
Advance tax refers to the payment of income tax liability in installments throughout the financial year, rather than paying the entire amount in one lump sum at the end of the year. This system helps taxpayers manage their tax burden and ensures a steady revenue stream for the government. The Income Tax Act specifies rules regarding when advance tax is due and the consequences of non-compliance.
Analyzing the Options for Advance Tax
Analyzing Option 1: Threshold for Advance Tax
Option 1 states that advance tax is payable if the tax liability exceeds Rs. 5,000 in the Financial Year (F.Y.).
- Fact Check: According to the Income Tax Act, 1961, an assessee needs to pay advance tax if their estimated tax liability for the year is Rs. 10,000 or more, not Rs. 5,000.
- Conclusion: Therefore, this statement is incorrect.
Analyzing Option 2: Interest Rate for Default
Option 2 mentions that interest under Section 234C for default in paying advance tax installments is charged at a simple interest rate of 2%.
- Fact Check: Section 234C of the Income Tax Act deals with the interest charged for deferment of advance tax. The applicable rate is simple interest at 1% for every month or part of a month of default, not 2%.
- Conclusion: This statement is incorrect.
Analyzing Option 3: Advance Tax for Sections 44AD and 44ADA
Option 3 states that an assessee opting for presumptive taxation under Section 44AD or Section 44ADA has to pay advance tax on or before 15th March.
- Fact Check: Section 44AD (for businesses) and Section 44ADA (for specified professions) allow certain taxpayers to compute their income on a presumptive basis. A significant benefit for taxpayers opting under these sections is that they are generally required to pay their entire advance tax liability on or before the 15th of March of the financial year. Unlike other taxpayers who pay advance tax in installments (June 15, Sept 15, Dec 15, March 15), these assessees have a consolidated deadline.
- Conclusion: This statement accurately reflects the rule for assessees under Section 44AD and 44ADA.
Analyzing Option 4: None of the Above
Since Option 3 is correct, this option is incorrect.
Conclusion on Advance Tax Payments
Based on the analysis, the specific rule for taxpayers opting under Section 44AD or 44ADA regarding the payment of their advance tax liability is accurately stated in Option 3. They must pay the computed advance tax liability on or before March 15th of the relevant financial year.
Important Questions from Sale of Goods Act, 1930
Match List I with List II:
List- I
Mode/delivery
List – II
Explanation
A.
Actual delivery (I)
Seller hands over to the buyer the key of the godown where the goods are stored B.
Constructive delivery (II)
Physical handing over of the possession of goods by the seller to the buyer C.
Symbolic delivery (III)
Voluntary transfer of possession of goods from seller to buyer D.
Delivery (IV)
Acknowledgement by third person on behalf of and at the disposal of the buyer
Choose the correct answer from the options given below -The right to ‘stoppage in transit’ exercised by an unpaid seller is to
Which of the following is not an implied condition in a contract of sale?
Meaning of unpaid seller is
Match List I with List ll relating to The Sale of Goods Act
Choose the correct answer from the options given below:List I
List II
A.
Actionable claim
l.
Goods to be manufactured after the making of the contract
B.
Appropriation of goods
ll.
Goods owned by the seller at the time of the making of the contract of sale
C.
Existing goods
lll.
Separating the goods sold from other goods so as to determine and identify the actual goods to be delivered
D.
Future goods
lV.
Recovered only by means of a suit or an action in a court of law
