What is Advance tax?
It is the tax you pay in advance. If you pay your income tax before the end of financial year, you don’t have to pay any extra interest.
You are eligible to pay advance tax if your total tax liability (after TDS deduction) and tax relief is more than Rs.10000.
When to pay?
As per the IT department provisions, advance-tax is required to be paid in four instalments: 15%, 45%, 75% and 100% of the tax payable on the current Income by 15th June, 15th September, 15th December, and 15th March, respectively.
If not paid, 1% interest per month is payable u/s 234C of Income-tax Act.
Who are exempted from paying advance-tax?
The following persons are exempt from paying advance-tax:
- Senior citizens who do not have any income from business.
- Individuals with tax liability of less than Rs 10000 after subtracting TDS and Tax Relief on Income.
How do I pay this advance-tax?
1) Go to this webpage and select challan number ITNS 280.
2) Here, fill all the necessary fields and follow these steps:
- Select ‘(0021) Income-Tax (Other Than Companies)’ under ‘Tax Applicable’.
- Choose the Assessment Year.
- Select ‘(100) Advance Tax’ as the type of payment.
- Select the bank through which the payment has to be done.
- Enter captcha code and click on ‘Proceed’.
Comments
2 comments
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