Section 115WJ: Advance Tax on Fringe Benefits - Rules and Interest
Section 115WJ of the Income-tax Act, 1961 prescribed how employers liable to fringe benefit tax (FBT) were required to pay advance tax, the applicable instalment dates, and interest on shortfalls. It is a historical provision, not a current advance-tax obligation.
Meaning and statutory context
Fringe benefit tax was the additional income-tax charged on the value of specified benefits provided or deemed provided by an employer, under section 115WA. Current fringe benefits, under section 115WI, referred to benefits chargeable for the assessment year immediately following the financial year. Section 115WJ dealt with advance payment of tax on those benefits.
Section 115WJ(1): obligation to pay
An assessee liable under section 115WI had to calculate and pay advance tax on current fringe benefits on its own initiative, following subsection (2). This obligation applied only while the fringe benefit tax regime operated.
Section 115WJ(2)(a): companies - historical instalments
Companies paid advance fringe benefit tax in four instalments. Percentages below are cumulative; tax already paid was deducted from the amount due at each subsequent date.
| Due date | Cumulative advance FBT required |
|---|---|
| 15 June | At least 15% |
| 15 September | At least 45%, less earlier instalments |
| 15 December | At least 75%, less earlier instalments |
| 15 March | 100%, less earlier instalments |
Section 115WJ(2)(b): non-company assessees
Other assessees subject to the former tax paid three instalments:
| Due date | Cumulative advance FBT required |
|---|---|
| 15 September | At least 30% |
| 15 December | At least 60%, less earlier instalments |
| 15 March | 100%, less earlier instalments |
Section 115WJ(3): interest for companies
Where a company missed an instalment or paid less than the required amount, simple interest was charged on the shortfall at:
- 15 June: 1% per month for three months on the shortfall below 15%.
- 15 September: 1% per month for three months on the shortfall below 45%.
- 15 December: 1% per month for three months on the shortfall below 75%.
- 15 March: 1% on the shortfall below 100%.
Section 115WJ(4): interest for other assessees
- 15 September: 1% per month for three months on the shortfall below 30%.
- 15 December: 1% per month for three months on the shortfall below 60%.
- 15 March: 1% on the shortfall below 100%.
Section 115WJ(5): shortfall against assessed tax
If advance FBT was not paid, or was less than 90% of the tax assessed under section 115WE, 115WF or 115WG, simple interest at 1% per month or part of a month applied from 1 April following the relevant financial year until the assessment date. The calculation depended on the historical assessment and payments concerned.
2007 amendment and later discontinuance
The Finance Act, 2007 substituted subsections (2) and (3), effective 1 June 2007, aligning advance FBT instalments more closely with ordinary advance-tax dates. The Income Tax Department explained the amendment in Circular No. 3/2008. Subsequently, section 115WM ended the application of Chapter XII-H from AY 2010-11. The presence of section 115WJ in historical or consolidated versions of the Act does not revive the tax.
Illustrative historical calculation
If a company estimated advance FBT of Rs. 1,00,000, the cumulative targets under the amended provision were Rs. 15,000 by 15 June, Rs. 45,000 by 15 September, Rs. 75,000 by 15 December and Rs. 1,00,000 by 15 March. For example, after paying Rs. 15,000 in June, a further Rs. 30,000 was needed by September. This illustration is not a current payment instruction.
Official legislation and references
- Income Tax Department - Section 115WJ
- Finance (No. 2) Act, 2009 - insertion of Section 115WM
- Income-tax Act, 1961 - official consolidated text (Finance Act, 2025)
- CBDT Circular No. 3/2008 - instalment amendment
Frequently asked questions
Is fringe benefit advance tax payable today?
No. Section 115WM makes Chapter XII-H inapplicable from assessment year 2010-11 onward.
What were the company instalment dates?
Companies paid cumulative amounts of 15% by 15 June, 45% by 15 September, 75% by 15 December, and 100% by 15 March.
What interest applied to a shortfall?
Section 115WJ prescribed simple interest at 1% for specified instalment shortfalls and 1% per month or part-month in the circumstances of subsection (5).
This article explains the historical provision and should not be treated as a statement that FBT is presently chargeable. For an old assessment or dispute, verify the law applicable to the relevant assessment year.