Advance Income Tax (ITO,1984)

PAYMENT OF TAX BEFORE ASSESSMENT (ACI ENF IC GDP)

Advance payment of tax - Section 64

(1) Except as provided in sub-section (2), tax shall be payable by an assessee during each financial year by way of advance payment of tax, if the total income of the assessee for the latest income year in respect of which he has been assessed by way of regular assessment, or has been provisionally assessed under this Ordinance, or the Income-tax Act, 1922 (XI of 1922), exceeds four lakh taka.

(2) Nothing in sub-section (1) shall apply to any income classifiable under the heads "Agricultural income" and "Capital gains" excluding gain from transfer of share of a company listed with a stock exchange.

Computation of advance tax - Section 65

(1) The amount of advance tax payable by an assessee in a financial year shall be the amount equal to the tax payable on his total income of the latest income year as assessed on regular basis or provisionally, as the case may be, as reduced by the amount of tax required to be deducted or collected at source.

(2) The tax payable under sub-section (1) shall be calculated at the rates in force in respect of the financial year referred to therein.

Installments of advance tax - Section 66

Advance tax shall be payable in four equal installments on the fifteenth day of September, December, March and June of the financial year for which the tax is payable.

Estimate of advance tax - Section 67

(1) Where, an assessee who is required to pay advance tax under section 64 estimates, at any time before the last installment is due, that the tax payable by him for the relevant assessment year is likely to be less than the amount of tax as computed under section 65, he may, after giving to the Deputy Commissioner of Taxes an estimate of the tax payable by him, pay such estimated amount of advance tax, as reduced by the amount, if any, already paid, in equal installments on the due dates of payment under section 66.

(2) The assessee may furnish a revised estimate of such amount at any time before any of such installments become payable and may thereby adjust any excess or deficiency, by reference to the amount already paid by him under this section, in any subsequent installment or installments payable in such financial year.

Advance payment of tax by new assesses - Section 68

Any person who has not previously been assessed by way of regular assessment under this Ordinance or the Income-tax Act, 1922 (XI of 1922), shall before the fifteenth day of June in each financial year, if his total income, subject to section 64 (2), of the period which would be the income year for the immediately following assessment year is likely to exceed four lakh taka, send to the Deputy Commissioner of Taxes an estimate of his total income and advance tax payable by him calculated in the manner laid down in section 65 and shall pay such amount on such dates specified in section 66 as have not expired by installments which may be revised according to section 67(2).

Advance tax on certain income – Section 68A

(1) A manufacturer of cigarette shall pay advance tax at the rate of three percent (3%) on net sale price in every month.

(2) The advance tax paid under sub-section (1) shall be adjustable against the quarterly installments of advance tax payable under section 66.

Explanation.- In this section, “net sale” shall be A- B, where, A is the gross sale and B is the value added tax and the supplementary duty, if any, on such gross sale.

Advance tax for the owners of private motor car –Section 68B

(1) Every person owning a private motor car shall be deemed to have an income by which the motor car is maintained and shall pay advance income tax to be collected at the rate and in the manner as mentioned in sub-section (2).

(2) Subject to the provision of sub-section (3), the authority responsible for the registration and fitness renewal of motor car shall collect, on or before the date of registration or fitness renewal of the motor car, advance tax at the following rate- 

Sl. #	Type and engine capacity of motor car	Amount of tax (in taka)
1	A car or a Jeep, not exceeding 1500cc	15,000/-
2	A car or a Jeep, exceeding 1500cc but not exceeding 2000cc	30,000/-
3	A car or a Jeep, exceeding 2000cc but not exceeding 2500cc	50,000/-
4	A car or a Jeep, exceeding 2500cc but not exceeding 3000cc	75,000/-
5	A car or a Jeep, exceeding 3000cc but not exceeding 3500cc	1,00,000/-
6	A car or a Jeep, exceeding 3500cc	1,25,000/-
7	A microbus	20,000/-

Provided that the rate of tax shall be fifty percent (50%) higher for each additional motor car if the owner has two or more motor cars in his name or in joint names with other person or persons.

Failure to pay installments of advance tax - Section 69

Where, an assessee who is required to pay advance tax fails to pay any installment of such tax, as originally computed or, as the case may be, estimated, on the due date, he shall be deemed to be an assessee in default in respect of such installment.

Levy of interest for failure to pay advance tax - Section 70

Where, in respect of an assessee who is required to pay advance tax, it is found in the course of regular assessment that advance tax has not been paid in accordance with the provisions of this Chapter, there shall be added, without prejudice to the consequences of the assessee being in default under section 69, to the tax as determined on the basis of such assessment, simple interest thereon calculated at the rate and for the period specified in section 73.

Credit of advance tax - Section 71

Any sum, other than a penalty or interest, paid by or recovered from an assessee as advance tax, shall be treated as a payment of tax in respect of the income of the period which would be the income year for an assessment for the year next following the year in which it was payable and shall be given credit for in the assessment of tax payable by the assessee.

Interest payable by Government on excess payment of advance tax - Section 72

(1) The Government shall pay simple interest at ten per cent per annum on the amount by which the aggregate sum of advance tax paid during a financial year exceeds the amount of tax payable by him as determined on regular assessment.

(2) The period for which interest under sub-section (1) shall be payable shall be the period from the first day of July of the year of assessment to the date of regular assessment in respect of the income of that year or a period of two years from the said first day of July, whichever is shorter.

Interest payable by the assessee on deficiency in payment of advance tax - Section 73

1. Where, in any financial year, an assessee has paid advance tax on the basis of his own estimate and the advance tax so paid together with the tax deducted at source, if any, is less than seventy-five per cent. of the amount of tax payable by him as determined on regular assessment, the assessee shall pay, in addition to the balance of tax payable by him, simple interest at ten percent per annum on the amount by which the tax so paid and deducted falls short of the seventy-five per cent of the assessed tax.

Provided that the rate of interest shall be fifty percent (50%) higher if the return is not filed on or before the Tax Day.

(2) The period for which interest under sub-section (1) shall be payable shall be the period from the first day of July of the year in which the advance tax was paid to the date of regular assessment in respect of the income of that year or a period of two years from the said first day of July, whichever is shorter.

(3) Where, as a result of appeal, revision or reference, the amount on which interest was payable under sub-section (1) has been reduced, the amount of interest payable shall be reduced accordingly and the excess interest paid, if any, shall be refunded together with the amount of tax that is refundable.

Delay Interest for not filing return on or before the Tax Day- Section 73A.

(1) Where an assessee is required to file a return of income for an assessment year under section 75 and fails to file the same before the expiry of the Tax Day, the assessee shall, without prejudice to any other consequences to which he may be liable to, pay a delay interest at the rate of two percent (2%) per month on the difference between the tax assessed on total income for the assessment year and the tax paid in advance for the assessment year including the tax deducted or collected at source;

Explanation.-In this section, the expression “tax assessed on total income” as mentioned in clause (a) of sub-section (1) means-

(i) where the return is subject to assessment under section 82BB, tax on total income under sub-section (1) or sub-section (2) or sub-section (3), whichever is higher.

(ii) where the return is not subject to assessment under section 82BB, tax on total income as assessed by the Deputy Commissioner of Taxes.

(2) The delay interest under sub-section (1) shall be calculated for a period from the first day immediately following the Tax Day to-

(a) where the return is filed, the date of filing the return;

(b) where the return is not filed, the date of regular assessment

74. Payment of tax on the basis of return.—

(1) Every person who is required to file a return under sections 75, 77, 78, 89(2), 91(3) or 93(1) shall, on or before the date on which he files the return, pay the amount of the tax payable by him on the basis of such return as reduced by the amount of any tax deducted from his income or paid by him in accordance with the provisions of this Chapter.

(2) Any amount paid under sub-section (1) shall be deemed to have been paid towards the sum as may be determined to be payable by him after regular assessment.

(3) A person who, without reasonable cause, fails to pay the tax as required by sub-section (1) shall be deemed to be an assessee in default.