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| « 6 smart tax moves to maximise investment returns, optimise... | 6 smart tax moves to maximise investment returns, optimise... » |
What is advance tax, how to pay it |
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| March, 21st 2022 |
Advance tax is the income tax paid in advance during the financial year instead of paying it at the end. The tax rules prescribe certain dates through the year when this must be paid. Advance tax may also be known as “pay as you earn” tax as it is paid in installments during the financial year.
When is it payable?
Where the tax payable by a person exceeds Rs 10,000 after deducting the TDS advance tax comes into play. If advance tax is not paid within the due dates, interest is payable on the tax as per the provisions of the I-T Act.
Due dates
15% of the advance tax should be paid on or before 15 June of the financial year.
45% of the advance tax (less tax already paid) should be paid on or before 15 September.75% of the advance tax (less tax already paid) should be pa ..
In the case of taxpayers who have chosen the presumptive taxation scheme, 100% of advance tax needs to be paid on or before 15 March of the financial year.
How to pay?
Challan 280 has been prescribed by the I-T department for payment of advance tax. It can be paid online using the link https://onlineservices. tin.egov-nsdl.com/etaxnew/tdsnontds.jsp and clicking on the tab for Challan no./ITNS 280. Next, select the option “advance tax” and pay through net banking or debit card. Once the payment is made, a tax receipt is displayed on the screen. Download and keep it with you for future references.
Points to note
- While making online payment of advance tax, it is very important to select the correct assessment year.
- In case of an NRI, advance tax is payable if their income taxable in India exceeds Rs 10,000.
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