Test Questions

Question 1

Calculations for Instalments

Answer 1

Each instalment is computed as the least of:

• 1/4 of the estimated tax payable for the current year;
• 1/4 of tax payable for the immediately preceding year;
• 1/4 of tax payable for the second preceding year for the March and June instalments, and 1/2 of [the tax payable for the preceding tax year net of the March and June payments] for the Sept. and Dec. instalments