Section 115WJ prescribes the instalment schedule and default interest for advance FBT. Companies pay in four instalments (15% by 15 June, 45% by 15 September, 75% by 15 December, 100% by 15 March); other assessees pay in three (30% by 15 September, 60% by 15 December, 100% by 15 March). Sub-sections (3)-(4) charge 1% per month for instalment shortfalls (the 234C analogue); sub-section (5) charges 1% per month where advance FBT is less than 90% of assessed tax (the 234B analogue). The interest is mandatory and compensatory (Ghaswala).
Historical context / FA amendment trail
Inserted by the Finance Act, 2005 w.e.f. AY 2006-07. Inapplicable from AY 2010-11 (s.115WM).
Operative consequences
• Companies: 15/45/75/100% by 15 Jun/Sep/Dec/Mar; others: 30/60/100% by 15 Sep/Dec/Mar.
• Shortfall interest at 1% per month (sub-ss 3-4); deferment interest at 1% per month where advance FBT < 90% of assessed tax (sub-s 5).
• Interest is automatic and mandatory, not discretionary (Ghaswala).
• Whether the s.208 Rs.10,000 threshold applies to advance FBT through s.115WL remained debatable; the FBT advance-tax code is largely self-contained.
Compiled for the bharattax.co Treatise on the Income-tax Act, 1961 (as amended by the Finance Act, 2026). Block 1 reproduces the statutory text verbatim from the Income-tax Act, 1961 (text as printed; the Chapter remains on the statute book but is inapplicable from AY 2010-11 by s.115WM). The Finance Act, 2026 makes no substantive change to Chapter XII-H. Not legal advice.
Case Laws & Commentary
Section 115WJ — Advance Tax in Respect of Fringe Benefits
Case Laws & Commentary · Income-tax Act, 1961 (as amended by the Finance Act, 2026) · bharattax.co Treatise
Chapter: XII-H — Income-tax on Fringe Benefits (Fringe Benefit Tax). Inserted by the Finance Act, 2005 with effect from assessment year 2006-07.
Operative life: FBT was levied for assessment years 2006-07 to 2009-10. By section 115WM (inserted by the Finance (No. 2) Act, 2009), the Chapter does not apply from assessment year 2010-11 onwards. The sections were NOT omitted — they remain on the statute book but are switched off prospectively.
Finance Act, 2026: Makes no substantive amendment to Chapter XII-H. (The Finance Act, 2026 carries only consequential cross-references to sections 115WD/115WH in a penalty provision; the FBT charge, scope and machinery are untouched.)
Part: C — Procedure for filing of return, assessment and payment.
Parallel: FBT analogue of sections 208-211 (instalments) and 234B/234C (interest for default).
A. SECTION COMMENTARY
Section 115WJ prescribes the instalment schedule and default-interest for advance FBT. Companies pay in four instalments (15% by 15 June, 45% by 15 September, 75% by 15 December, 100% by 15 March); other assessees pay in three instalments (30% by 15 September, 60% by 15 December, 100% by 15 March). Sub-sections (3) and (4) impose interest at 1% per month for shortfalls in the respective instalments (the FBT counterpart of section 234C), and sub-section (5) imposes interest at 1% per month where the advance tax paid is less than 90% of the assessed tax, from 1 April of the assessment year to the date of assessment (the FBT counterpart of section 234B).
A recurring practitioner question was whether the threshold in section 208 (advance tax payable only where the amount is Rs. 10,000 or more) applies to advance FBT through section 115WL. The better view, and the one generally adopted, is that the FBT advance-tax code in sections 115WI-115WJ is self-contained on quantum and instalments; section 115WL imports 'other provisions … as far as may be', and the section 208 threshold is read in only to the extent consistent with the FBT scheme. (This remained a matter of professional debate; no authoritative ruling settled it for FBT.)
The interest charges in section 115WJ are compensatory and mandatory in the same way as sections 234B/234C, per the Constitution Bench in Ghaswala. There is no FBT-specific reported merits decision on section 115WJ.
B. STATUTORY POSITION (verbatim text)
Section 115WJ, Income-tax Act, 1961 (the instalment Tables I and II are reproduced in operative substance in clauses (a) and (b)):
115WJ. (1) Every assessee who is liable to pay advance tax under section 115WI, shall on his own accord, pay advance tax on his current fringe benefits calculated in the manner laid down in sub-section (2).
(2) Advance tax on the current fringe benefits shall be payable by— (a) all the companies, who are liable to pay the same in four instalments during each financial year [Table I]: on or before the 15th June — not less than fifteen per cent of such advance tax; on or before the 15th September — not less than forty-five per cent as reduced by the amount, if any, paid in the earlier instalment; on or before the 15th December — not less than seventy-five per cent as reduced by amounts paid earlier; on or before the 15th March — the whole amount as reduced by amounts paid earlier;
(b) all the assessees (other than companies), who are liable to pay the same in three instalments during each financial year [Table II]: on or before the 15th September — not less than thirty per cent of such advance tax; on or before the 15th December — not less than sixty per cent as reduced by the amount, if any, paid in the earlier instalment; on or before the 15th March — the whole amount as reduced by amounts paid earlier.
(3) Where an assessee, being a company, has failed to pay the advance tax payable by him on or before the due date for any instalment or where the advance tax paid by him is less than the amount payable by the due date, he shall be liable to pay simple interest calculated at the rate of— (i) one per cent per month, for three months on the shortfall below fifteen per cent (15th June); (ii) one per cent per month, for three months on the shortfall below forty-five per cent (15th September); (iii) one per cent per month, for three months on the shortfall below seventy-five per cent (15th December); and (iv) one per cent on the shortfall below hundred per cent (15th March).
(4) Where an assessee, being a person other than a company, has failed to pay the advance tax ... he shall be liable to pay simple interest at the rate of— (i) one per cent per month, for three months on the shortfall below thirty per cent (15th September); (ii) one per cent per month, for three months on the shortfall below sixty per cent (15th December); and (iii) one per cent on the shortfall below hundred per cent (15th March).
(5) Where an assessee has failed to pay the advance tax payable by him during a financial year or where the advance tax paid by him is less than ninety per cent of the tax assessed under section 115WE or section 115WF or section 115WG, the assessee shall be liable to pay simple interest at the rate of one per cent per month, for every month or part of a month comprised in the period from the 1st day of April next following such financial year to the date of assessment of tax under section 115WE or section 115WF or section 115WG.
Note: Tables I and II in sub-section (2) are reproduced above in running text within clauses (a) and (b) respectively, preserving each due date and the corresponding minimum percentage and the 'as reduced by earlier instalment(s)' formula.
C. AUTHORITIES
Candour note: no FBT-specific reported decision construes section 115WJ. As the FBT mirror of sections 208-211 and 234B/234C, its interest charges are mandatory and compensatory (Ghaswala); the section 208 threshold question was a matter of professional debate not authoritatively settled for FBT.
C-1 Mandatory, compensatory interest for advance-tax default (cognate)
Proposition: Interest under the mandatory machinery provisions of the Act (e.g. sections 234A-234C) is compensatory and mandatory; the levy is automatic and not in the discretion of the authority. Applied to FBT, the interest charges in sections 115WJ and 115WK (and 234A as imported by 115WK(2)) are mandatory in the same way.
Why relevant: Section 115WL applies 'all other provisions of this Act' to fringe benefits; the FBT interest provisions mirror the income-tax interest code, so the Ghaswala principle governs them.
Compiled for the bharattax.co Treatise on the Income-tax Act, 1961 (as amended by the Finance Act, 2026). Statutory text reproduced verbatim from the Income-tax Act, 1961 (text as printed in the Act, the Chapter remaining on the statute book but rendered inapplicable from assessment year 2010-11 onwards by section 115WM). Citations are stated as reported; rulings of the Authority for Advance Rulings and orders of the Tribunal are flagged as such. Where a section has not been judicially construed, that is stated candidly and the nearest governing authority (including the machinery provisions imported by section 115WL) is given. This material is for professional reference and is not legal advice.
Function in the statutory architecture
Section 115WJ prescribes the instalment schedule and default interest for advance FBT. Companies pay in four instalments (15% by 15 June, 45% by 15 September, 75% by 15 December, 100% by 15 March); other assessees pay in three (30% by 15 September, 60% by 15 December, 100% by 15 March). Sub-sections (3)-(4) charge 1% per month for instalment shortfalls (the 234C analogue); sub-section (5) charges 1% per month where advance FBT is less than 90% of assessed tax (the 234B analogue). The interest is mandatory and compensatory (Ghaswala).
Historical context / FA amendment trail
Inserted by the Finance Act, 2005 w.e.f. AY 2006-07. Inapplicable from AY 2010-11 (s.115WM).
Operative consequences
• Companies: 15/45/75/100% by 15 Jun/Sep/Dec/Mar; others: 30/60/100% by 15 Sep/Dec/Mar.
• Shortfall interest at 1% per month (sub-ss 3-4); deferment interest at 1% per month where advance FBT < 90% of assessed tax (sub-s 5).
• Interest is automatic and mandatory, not discretionary (Ghaswala).
• Whether the s.208 Rs.10,000 threshold applies to advance FBT through s.115WL remained debatable; the FBT advance-tax code is largely self-contained.
______________________________________________________________________________________________
Compiled for the bharattax.co Treatise on the Income-tax Act, 1961 (as amended by the Finance Act, 2026). Block 1 reproduces the statutory text verbatim from the Income-tax Act, 1961 (text as printed; the Chapter remains on the statute book but is inapplicable from AY 2010-11 by s.115WM). The Finance Act, 2026 makes no substantive change to Chapter XII-H. Not legal advice.
Case Laws & Commentary
Section 115WJ — Advance Tax in Respect of Fringe Benefits
Case Laws & Commentary · Income-tax Act, 1961 (as amended by the Finance Act, 2026) · bharattax.co Treatise
Chapter: XII-H — Income-tax on Fringe Benefits (Fringe Benefit Tax). Inserted by the Finance Act, 2005 with effect from assessment year 2006-07.
Operative life: FBT was levied for assessment years 2006-07 to 2009-10. By section 115WM (inserted by the Finance (No. 2) Act, 2009), the Chapter does not apply from assessment year 2010-11 onwards. The sections were NOT omitted — they remain on the statute book but are switched off prospectively.
Finance Act, 2026: Makes no substantive amendment to Chapter XII-H. (The Finance Act, 2026 carries only consequential cross-references to sections 115WD/115WH in a penalty provision; the FBT charge, scope and machinery are untouched.)
Part: C — Procedure for filing of return, assessment and payment.
Parallel: FBT analogue of sections 208-211 (instalments) and 234B/234C (interest for default).
A. SECTION COMMENTARY
Section 115WJ prescribes the instalment schedule and default-interest for advance FBT. Companies pay in four instalments (15% by 15 June, 45% by 15 September, 75% by 15 December, 100% by 15 March); other assessees pay in three instalments (30% by 15 September, 60% by 15 December, 100% by 15 March). Sub-sections (3) and (4) impose interest at 1% per month for shortfalls in the respective instalments (the FBT counterpart of section 234C), and sub-section (5) imposes interest at 1% per month where the advance tax paid is less than 90% of the assessed tax, from 1 April of the assessment year to the date of assessment (the FBT counterpart of section 234B).
A recurring practitioner question was whether the threshold in section 208 (advance tax payable only where the amount is Rs. 10,000 or more) applies to advance FBT through section 115WL. The better view, and the one generally adopted, is that the FBT advance-tax code in sections 115WI-115WJ is self-contained on quantum and instalments; section 115WL imports 'other provisions … as far as may be', and the section 208 threshold is read in only to the extent consistent with the FBT scheme. (This remained a matter of professional debate; no authoritative ruling settled it for FBT.)
The interest charges in section 115WJ are compensatory and mandatory in the same way as sections 234B/234C, per the Constitution Bench in Ghaswala. There is no FBT-specific reported merits decision on section 115WJ.
B. STATUTORY POSITION (verbatim text)
Section 115WJ, Income-tax Act, 1961 (the instalment Tables I and II are reproduced in operative substance in clauses (a) and (b)):
115WJ. (1) Every assessee who is liable to pay advance tax under section 115WI, shall on his own accord, pay advance tax on his current fringe benefits calculated in the manner laid down in sub-section (2).
(2) Advance tax on the current fringe benefits shall be payable by— (a) all the companies, who are liable to pay the same in four instalments during each financial year [Table I]: on or before the 15th June — not less than fifteen per cent of such advance tax; on or before the 15th September — not less than forty-five per cent as reduced by the amount, if any, paid in the earlier instalment; on or before the 15th December — not less than seventy-five per cent as reduced by amounts paid earlier; on or before the 15th March — the whole amount as reduced by amounts paid earlier;
(b) all the assessees (other than companies), who are liable to pay the same in three instalments during each financial year [Table II]: on or before the 15th September — not less than thirty per cent of such advance tax; on or before the 15th December — not less than sixty per cent as reduced by the amount, if any, paid in the earlier instalment; on or before the 15th March — the whole amount as reduced by amounts paid earlier.
(3) Where an assessee, being a company, has failed to pay the advance tax payable by him on or before the due date for any instalment or where the advance tax paid by him is less than the amount payable by the due date, he shall be liable to pay simple interest calculated at the rate of— (i) one per cent per month, for three months on the shortfall below fifteen per cent (15th June); (ii) one per cent per month, for three months on the shortfall below forty-five per cent (15th September); (iii) one per cent per month, for three months on the shortfall below seventy-five per cent (15th December); and (iv) one per cent on the shortfall below hundred per cent (15th March).
(4) Where an assessee, being a person other than a company, has failed to pay the advance tax ... he shall be liable to pay simple interest at the rate of— (i) one per cent per month, for three months on the shortfall below thirty per cent (15th September); (ii) one per cent per month, for three months on the shortfall below sixty per cent (15th December); and (iii) one per cent on the shortfall below hundred per cent (15th March).
(5) Where an assessee has failed to pay the advance tax payable by him during a financial year or where the advance tax paid by him is less than ninety per cent of the tax assessed under section 115WE or section 115WF or section 115WG, the assessee shall be liable to pay simple interest at the rate of one per cent per month, for every month or part of a month comprised in the period from the 1st day of April next following such financial year to the date of assessment of tax under section 115WE or section 115WF or section 115WG.
Note: Tables I and II in sub-section (2) are reproduced above in running text within clauses (a) and (b) respectively, preserving each due date and the corresponding minimum percentage and the 'as reduced by earlier instalment(s)' formula.
C. AUTHORITIES
Candour note: no FBT-specific reported decision construes section 115WJ. As the FBT mirror of sections 208-211 and 234B/234C, its interest charges are mandatory and compensatory (Ghaswala); the section 208 threshold question was a matter of professional debate not authoritatively settled for FBT.
C-1 Mandatory, compensatory interest for advance-tax default (cognate)
CIT v. Anjum M.H. Ghaswala (2001) 252 ITR 1 (SC) [Constitution Bench]
Proposition: Interest under the mandatory machinery provisions of the Act (e.g. sections 234A-234C) is compensatory and mandatory; the levy is automatic and not in the discretion of the authority. Applied to FBT, the interest charges in sections 115WJ and 115WK (and 234A as imported by 115WK(2)) are mandatory in the same way.
Why relevant: Section 115WL applies 'all other provisions of this Act' to fringe benefits; the FBT interest provisions mirror the income-tax interest code, so the Ghaswala principle governs them.
Compiled for the bharattax.co Treatise on the Income-tax Act, 1961 (as amended by the Finance Act, 2026). Statutory text reproduced verbatim from the Income-tax Act, 1961 (text as printed in the Act, the Chapter remaining on the statute book but rendered inapplicable from assessment year 2010-11 onwards by section 115WM). Citations are stated as reported; rulings of the Authority for Advance Rulings and orders of the Tribunal are flagged as such. Where a section has not been judicially construed, that is stated candidly and the nearest governing authority (including the machinery provisions imported by section 115WL) is given. This material is for professional reference and is not legal advice.